(ANSA) - ROME, MARCH 25 - The green bond market "is still small in size", the total amount outstanding "as of September 2020 amounts to 996 billion dollars, which represents only 0.4% of the international bond market, but it is rapidly growing ".
The Bank of Italy writes in a study on the prospects of this security which differs from a normal bond as "there is an explicit commitment by the issuer to use only the collected funds to finance or refinance green projects".
The market is expected to grow further in the coming years, thanks to the spread of "environmental", "sustainable" and "socially responsible" investment strategies, the study underlines.
The first issue of a green bond dates back to 2007 when the European Investment Bank (EIB) launched its first 'Climate Awareness Bond'.
At the end of 2020, the "sovereign market for green bonds amounted to almost 73 billion euros", issued by fourteen states.
"Supraniglobal green bonds represent only 1.5% of outstanding debt issued by green sovereigns, but the share is growing rapidly."
With issues of € 61 billion, the Eurozone represents 83% of the market (90% if European non-Eurozone issues are included).
Most of the issues (94%) are denominated in euros while a minority (5%) are denominated in dollars.
Poland and France pioneered this market in 2016 and early 2017, the study explains.
(HANDLE).