This report covers the labelled green corporate loan market in Australia and New Zealand. It explores what has happened so far, best practice in labelling a green loan, and what should be done to channel loan markets for climate change investment.
To date there have been fourteen (14) labelled green corporate loans in Australia, from nine borrowers, and two green loans from borrowers in New Zealand. Of the combined total ten are Certified under the Climate Bonds Standard indicating a high level of commitment to international best practice.
Additionally, we provide commentary on sustainability-linked loans and green consumer loans.
Australia and New Zealand require significant investments in green infrastructure and assets to transition to a low carbon economy in line with their international commitments.
The private sector, with one of the largest savings pools in the world as well as one of the largest bank balance sheets per capita, has the means to support public spending to provide the required funding.
Sustainable finance will play an important role in transitioning economies to a low carbon basis and promoting social, financial and economic resilience for a future in line with climate and environmental objectives.