Green and social investments are growing due to the "blame" of the Covid pandemic. This is certified by the Intesa Sanpaolo Studies and Research Department which has published a new report, entitled Green Bond Brief, in which, starting from the role of the European Union on the green bond market, it foresees new green government issuers also in 2021.
In this year – explains the report – the demand for green assets has grown faster than the offer. Social bond issues have increased fivefold since 2019 (from around 36 billion in 2019 to the current 157 billion), reporting a decidedly higher growth than that recorded in green bonds in the same period. In addition to the contingent factors dictated by Covid, growth was also encouraged by the consolidation of market standards.
The European Union has provided further impetus to the development of the market by issuing four SURE social bonds starting from October for a total amount of 31 billion aimed at giving support to the member states most affected by the pandemic. The first two SURE social bonds in October received orders for more than 233 billion and were issued for 17 billion.
Starting from 1 January 2021, the ECB will accept as collateral in refinancing operations bonds with coupons linked to performance with respect to one or more sustainability objectives and in line with the European Taxonomy and/or with the objectives outlined by the United Nations (United Nations Sustainable Development Goals). Furthermore, the bonds may also be admitted to the PEPP or EAPP programs if they meet the eligibility criteria.
