Green finance in America: A brighter year ahead?

Alternative financing tools piquing the interest of investors

Michael Ferguson, director, US energy infrastructure and sustainable finance at S&P Global Ratings, highlights the expansion of the US's decarbonisation efforts and how green bonds are used in this transformation.

The financing of green infrastructure projects is rising worldwide. More commonly known as green bonds, these alternative financing tools are piquing the interest of investors, many of whom are increasingly sensitive to climate concerns. Total global issuance rose to $155bn last year - dwarfing 2013's global figure of $13bn. And, though it suffered patchy beginnings, the proportion issued in the US is undergoing significant expansion. Political headwinds and uncertainty around regulatory policy had initially tempered US green bond financing. Nonetheless, a diverse group of states, ...