Ando Sakai, Mr. Francisco Roch, Ursula Wiriadinata, and Mr. Chenxu Fu
.2 percent of all government debt securities in the Organisation for Economic Co-operation and Development (OECD) area. In emerging market and developing economies (EMDEs), sovereign greenbond issuances account for 12 percent of total greenbond issuances ( OECD 2021 ). However, the sovereign greenbond market is likely to expand as more countries see greenbond issuance as a vital tool for demonstrating moral leadership on climate change and sustainability, as well as funding commitments under the Paris Agreement. Similarly, a few countries have insured themselves
greenbond—the first in the Middle East—focusing on antipollution and renewable energy projects.
The IMF is focused on working with our members to help them develop and afford policies for people. Our economic advice and capacity building support increased and improved social spending, domestic revenue mobilization, and more efficient and progressive taxation.
We have also provided financing at unprecedented speed and scale: more than $100 billion to 81 countries, including 48 low-income nations. And we are considering options to further adapt our lending toolkit
Green debt markets are rapidly growing while product design and standards are evolving. Many policymakers and investors view green debt as an important component in the policy mix to achieve the transition to a low carbon economy and ensure the pricing of climate risks. Our analysis contributes to the nascent literature on the environmental impact of green debt by documenting the CO2 emission intensity of corporate green debt issuers. We find lower emission intensities for green bond issuers relative to other firms, but no difference for green loan and sustainability-linked loan borrowers. Green bond, green loan, and sustainability-linked loan borrowers lower their emission intensity over time at a faster rate than other firms.