Moody's Investors Service has joined an effort designed to help promote the growth of the green bond market, the credit rating agency announced on Wednesday.
The Climate Bonds Initiative Partners Program aims to support efforts to advance the growth and development of a global market for green bonds, which are debt issues to finance projects that address climate change.
"Our partnership with Climate Bonds Initiative allows us to boost their efforts to advance the development of international definitions and standards for green bonds, conduct research and educate issuers, investors, and other market practitioners," says Henry Shilling, senior vice president with Moody's, in a statement.
The rating agency notes that green bond issuance rose 120% to US$93.4 billion in 2016, and issuance will likely set a new record in 2017. Through the first quarter, green bond issuance reached almost US$30 billion, Moody's says.
"Green bond issuance will likely set another record this year, yet this momentum could be accelerated with the benefit of improved and consistently applied environmental disclosures and reporting," says Shilling.