Europe’s market regulator has concluded that utilities, banks and energy companies that issue green bonds have decarbonised faster than non-green bond issuers in the same sectors.
A report by the European Securities and Markets Authority, ESMA, has found that eligible green bonds issued in Europe between 2009 and 2019 are correlated to stronger entity-level reductions in carbon intensity.
The median carbon intensity of firms domiciled in the European Economic Area dropped sharply from 2009 to 2019, with green bond issuers outperforming non-green issuers across all three sectors, the report said. The outperformance was particularly pronounced in the energy sector, where the median carbon intensity of green bond issuers dropped by 88% versus 27% for non-green. This figure was 36% versus 20% for banks and 54% versus 51% for utilities.
Green bond issuers are also far more likely to report their emissions, with three quarters of the 67 issue…