Ireland increasingly comfortable at the green bond table

Brian Haugh, Head of BDO Valuation & Financial Modelling Centre featured in The Irish Times Special Report on Green Finance.

For all the talk of green bonds they are only a small part of the story when it comes to the way in which financial instruments can tackle climate change. They also represent no more than a transition point.

Investors are increasingly demanding socially-responsible opportunities. Given the urgent need to tackle climate change, that demand will only rise. “The Irish Sovereign Green Bond was issued to fund eligible projects such as water treatment schemes, retrofit programmes, flood relief and other specific schemes. Banks are issuing green bonds in order to provide a pool of funding specifically for green lending,” says Brian.

“For many ethically-minded investors simply knowing that their money will be used exclusively for positive environmental impacts is reason enough to invest. However, there is also some evidence that green bonds can offer investors lower volatility and higher risk-adjusted returns, which represents a win-win for ethical investors.”

Content adapted from The Irish Times.

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