The European Investment Bank (EIB) recently launched the Sustainability Awareness Bond, a debt product which will be used to support projects related to the UN’s Sustainable Development Goals (SDGs).
Green bonds have been one of the key growth areas in the field, with the hope that the market could reach $1 trillion by 2020 and accelerate sustainable finance within Europe.
The new bond will initially focus on projects in the water sector, based on the EIB’s previous experience in the area.
According to EIB’s President, Werner Hoyer the bond is expected to “launch a new dialogue on sustainable investment.”
It is estimated that $6 trillion a year will be needed between now and 2030 to meet the SDGs, and that around half of that is flowing already.