{"id":2544,"date":"2023-08-08T09:51:34","date_gmt":"2023-08-08T02:51:34","guid":{"rendered":"https:\/\/gunungcapital.com\/?p=2544"},"modified":"2023-08-08T09:52:03","modified_gmt":"2023-08-08T02:52:03","slug":"sustainable-debt-in-the-energy-sector","status":"publish","type":"post","link":"https:\/\/gunungcapital.com\/zh\/sustainable-debt-in-the-energy-sector\/","title":{"rendered":"Sustainable Debt in the Energy Sector"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"2544\" class=\"elementor elementor-2544\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f5fa7d0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f5fa7d0\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3c3e42c\" data-id=\"3c3e42c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6bdcd4d elementor-widget elementor-widget-text-editor\" data-id=\"6bdcd4d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">For the first time in the past seven years, environment, social, and governance-oriented sustainable borrowings declined in 2022 but continued to be substantially high, compared to 2020, particularly thanks to creditors for corporate energy and utilities. Despite a minor decline from 2021, corporate issuances in the energy industry have been over twice as high as in 2020, demonstrating the continuing increase in demand. Regardless of concerns about the actual effects, sustainability-related bonds (SBs) continue to account for the greatest portion of offerings (40%) in the large group of labeled debts, marginally ahead of green bonds.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">2023 is projected to continue to see an elevated rate of issuances, based on recent developments in China, the EU and the US. Additionally, the main investor of corporate bonds \u2013 the European Central Bank \u2013 has pledged to invest\u00a0in environment-focused issues. This will likely lead to big polluters paying greater margins while continuing to highlight the economic advantages of green issuances. As per a study conducted by the International Energy Agency (IEA), in most emerging market developing nations, green debt issuances continued to occur predominantly in USD and EUR or other overseas currencies and developed countries continued to account for the largest share of issuances.\u00a0<\/span><\/p><p>\u00a0<\/p><p><b>Movements in Green Taxonomies<\/b><\/p><p><span style=\"font-weight: 400;\">2022 witnessed some significant developments in the issuance of sustainable credit. The Common Ground Taxonomy (CGT) was introduced in mid-2022, along with the Green Bond Standards of China. CGT was the result of an in-depth study by a task force established by the EU and China in mid-2020 for conducting an extensive review of the current sustainable taxonomies. The group pointed out the distinctions and similarities in their strategies and outcomes. China\u2019s green bond rules are expected to support the expansion of China&#8217;s largest green bond market. Besides, positive regulatory and legislative changes in the global economy are likely to buoy green bond issuances in nations including the US. One such example is the US Inflation Reduction Act, 2022, which offers financing programs and opportunities to hasten the clean energy transition and is expected to significantly increase the installation of facilities for green energy supplies.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a03a7ef elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a03a7ef\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-946de90\" data-id=\"946de90\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-36292bb elementor-widget elementor-widget-text-editor\" data-id=\"36292bb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Sustainability-related bonds<\/b><\/p><p><span style=\"font-weight: 400;\">SBs offer a means for corporations and governments to enter the green finance market, particularly those in industries that find decarbonization a challenge. The bonds are like conventional bonds but boast a special feature, which allows the interest rate at which payments are made to an investor to alter depending on whether the bond issuer has achieved particular sustainability goals, such as a drop in overall emission levels. The bonds are open to a wider spectrum of businesses and governments that find it difficult to determine adequate initiatives required to comply with the restrictions on the utilisation of funds.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Although benefits are associated with SBs, they do not demand rigorous disclosures regarding the use of the funds, as opposed to green bonds. This raises questions on the legitimacy of the economic advantages derived by investors for investing in bonds that may not meet the targets.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-32247a7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"32247a7\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-12e54e3\" data-id=\"12e54e3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-45de97e elementor-widget elementor-widget-text-editor\" data-id=\"45de97e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Figure 1<\/strong><\/p><p><strong>SEQ Figure. Sector-specific Sustainability-linked Bond Issuances<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8d65adb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8d65adb\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7b1adb1\" data-id=\"7b1adb1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e7a5b6d elementor-widget elementor-widget-image\" data-id=\"e7a5b6d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"413\" height=\"376\" src=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-093059.png\" class=\"attachment-large size-large wp-image-2546\" alt=\"\" srcset=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-093059.png 413w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-093059-300x273.png 300w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-093059-13x12.png 13w\" sizes=\"(max-width: 413px) 100vw, 413px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8d314e7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8d314e7\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7dfe4c8\" data-id=\"7dfe4c8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e5755fa elementor-widget elementor-widget-text-editor\" data-id=\"e5755fa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Source:\u00a0<br \/>Acuity Knowledge Partners and IEA analysis based on 2023 Bloomberg New Energy Finance (BNEF) records<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e9d7f5c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e9d7f5c\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ddb8f2f\" data-id=\"ddb8f2f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d785444 elementor-widget elementor-widget-spacer\" data-id=\"d785444\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-column .elementor-spacer-inner{height:var(--spacer-size)}.e-con{--container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(--container-widget-width,var(--spacer-size));--align-self:var(--container-widget-align-self,initial);--flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(--container-widget-height,var(--spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}<\/style>\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-45734b1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45734b1\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-93ee57a\" data-id=\"93ee57a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3f80744 elementor-widget-tablet__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"3f80744\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Government Debt<\/b><\/p><p><span style=\"font-weight: 400;\">Since its inception in 2017, government bonds, also known as sovereign bonds, have increased materially (14% share in the sustainable debt market as of March 2023 from 4% in 2017).\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Governments can benefit from sustainable credit because of extended periods and favorable rates. The majority of government green debt offerings have garnered less interest than comparable conventional debt instruments. These government offerings can be especially helpful in nations with moderate income where the financial strain is still substantial but getting subsidized loans is difficult. In addition to serving as a valuable source of public funding, governmental issuances are essential to the growth of regional investment markets. The green premium has helped government green bonds in emerging market nations, proving its worth as a valuable tool for countries with substantial financial loads.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a086fd0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a086fd0\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ffbe6dd\" data-id=\"ffbe6dd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e25ca09 elementor-widget elementor-widget-text-editor\" data-id=\"e25ca09\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Figure 2<\/b><\/p><p><b>Government Debt as a Share of Sustainability Debt<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e457d4b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e457d4b\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-21d81ca\" data-id=\"21d81ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c1a1d41 elementor-widget elementor-widget-image\" data-id=\"c1a1d41\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"525\" height=\"452\" src=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-091527.png\" class=\"attachment-large size-large wp-image-2547\" alt=\"\" srcset=\"https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-091527.png 525w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-091527-300x258.png 300w, https:\/\/gunungcapital.com\/wp-content\/uploads\/2023\/08\/Screenshot-2023-08-08-091527-14x12.png 14w\" sizes=\"(max-width: 525px) 100vw, 525px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8492218 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8492218\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-db95da5\" data-id=\"db95da5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ada447e elementor-widget elementor-widget-text-editor\" data-id=\"ada447e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Source:\u00a0<br \/>Acuity Knowledge Partners and IEA analysis based on 2023 Bloomberg New Energy Finance (BNEF) records<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>For the first time in the past seven years, environment, social, and governance-oriented sustainable borrowings declined in 2022 but continued to be substantially high, compared to 2020, particularly thanks to creditors for corporate energy and utilities. Despite a minor decline from 2021, corporate issuances in the energy industry have been over twice as high as [&hellip;]<\/p>","protected":false},"author":1,"featured_media":2551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/2544"}],"collection":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/comments?post=2544"}],"version-history":[{"count":0,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/posts\/2544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media\/2551"}],"wp:attachment":[{"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/media?parent=2544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/categories?post=2544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gunungcapital.com\/zh\/wp-json\/wp\/v2\/tags?post=2544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}