www.bloomberg.com
Transition bonds are set to grow in 2024, even as broader sustainable finance markets face a climate backlash and regulatory scrutiny. These instruments fund emissions reduction in high-polluting sectors that traditional green bonds often overlook. Major firms like HSBC and Mitsubishi UFJ predict issuance will accelerate as clarity improves on defining “transition” finance. While critics worry about greenwashing, demand remains from investors seeking tangible climate action in hard-to-abate industries like steel and cement.
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