Friday, September 19, 2014

Investment in green titles already exceeds the €15,4 billion

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There are two reasons why the Zurich Insurance Group, one of the world's largest financial companies, is investing about € 1,5 billion in green bonds, or green titles. The first are the environmental benefits of investing in projects that reduce emissions of greenhouse gases and stop global warming. The second â€" and quite important for investors â€" is the profitability of green bonds.

"If there are opportunities that provide market returns as well as tangible and measurable environmental impacts, I consider them as a great investment opportunities," says the Director of Zurich's investment, Cecilia Reyes.

It is now clearer than ever for investors that the green bonds, which provide capital to finance renewable energy projects and cleaned with the promise of return on investment, are a good deal. The purchase of such assets is increasing at breakneck pace and more than €15,4 billion have already been issued in 2014 in the form of green bonds. The Climate Bond Initiative, a non-profit investor group, expects this market reaches the €30,9 billion at the end of the year. This means that the whole of that money will go straight to renewable energies.

The Zurich has risen to double investment in green bonds during the summer. In the spring, Unilever and Toyota issued the first titles of the genre. Even Warren Buffett is investing in green bonds, writes the Guardian.

And why decided now big investors start betting on clean economy? The answer is simple: the green bonds are a financial product that provides nice returns, between 4% to 5%, with a minimum risk. And clean energy projects, aided by cheaper renewable, are environmentally and financially more attractive.

And why are they so important the green bonds in the fight against climate change? Halting climate change will require trillions of euros of additional investment in renewable energy and other clean energy projects and the titles are a fundamental life force to finance these projects.

In fact, the total investment in clean energies should continue to increase, reaching €385,6 billion in 2020 and €771 billion in 2030. Just reaching these values is that there is the likelihood that we can prevent global temperatures increase by more than two degrees Celsius. But the current investment levels, emissions and global temperatures are on the way that should do increase temperatures between four to five degrees Celsius â€" a scenario that will be catastrophic for the economy and the environment.

Foto: Oooah! / Creative Commons

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