The Green Bonds market keeps growing. What nobody was forecasting is the breakneck speed of new issuances in 2016. Much less that Apple would start surfing the wave now.
Up to the mid of February, almost $12 billion in new bonds had already been issued, according to the Climate Bonds Initiative, which has a goal of $100 billion in new green bonds in 2016, more than doubling the $42 billion issued last year. The year to date performance and the end of 2015 rush corroborate the new forecast.
This week, Apple announced its first Green Bonds, part of a $10-12 billion package, to the tune of $1.5 billion, which will mature in 2023. According the prospectus, the bonds will follow the Green Bonds Principles (SUST4IN is part of it) proceeds will be used for new and existing projects under three environmental priorities:
- Reduce Apple’s impact on climate change by using renewable energy sources and driving energy efficiency in their facilities, products and supply chain.
- Pioneer the use of greener materials in Apple’s products and processes.
- Conserve resources.
All under the following eligible criteria:
- new and ongoing renewable energy projects, such as solar and wind projects, or associated energy storage solutions,
- projects that have received within the last three years, or are expected to receive, certification of LEED Gold or Platinum or BREEAM Very Good, Excellent, or Outstanding “green building” standards,
- the implementation of environmental design elements for new or ongoing building developments, such as high performance mechanical systems, natural ventilation, on-site renewable energy, and high performance lighting systems,
- energy efficiency projects and technologies at our corporate facilities, such as heating, ventilation and air conditioning systems upgrades, lighting retrofits and energy monitors and controls,
- water efficiency projects and technologies at our corporate facilities, such as upgrades to water efficient fixtures and water efficient irrigation and increased use of recycled water,
- projects that enhance recycling, material recovery and reuse, and landfill waste diversion for our products and facilities, and
- projects and technologies that facilitate the use of greener materials in our products, through (i) the use of bio-based materials, (ii) the use of recyclable materials or (iii) the
The Apple example and the recent accelerated growth confirm the trend observed in 2014 and in late 2015. The even better news is that, despite the growth, the green bonds are still a very small part of the global bonds market, with ample margin to grow. And not only in China, another green star!