Moody's sees incentives for green loans in 2024

By Alimat Aliyeva

The reputable rating agency Moody's predicts the issuance of bonds related to the sustainable development of economies in the world in 2024 for a total of 950 billion US dollars, of which 580 billion dollars will be spent on "green" bonds, Azernews reports, citing foreign media outlets.

The agency is confident that the deficit in emerging markets with "climate loans" will stimulate new approaches to financing.

In particular, various development banks (the International Development Bank — the structure of the World Bank, the European Bank for Reconstruction and Development and others) will be issuers of "sustainable" bonds and will offer other "green" instruments.

"Investments in new green technologies will accelerate as financing the transition period (from fossil fuels to a green world) becomes increasingly important. There is growing political support for environmentally friendly solutions, including green hydrogen, biofuels, energy storage batteries, carbon capture devices, recycling and storage. Such support can increase the price competitiveness of these technologies, increasing the likelihood that such "green" projects will become a growing integral part of financial bond structures (public or private)," Moody's noted.

According to his experts, market innovations will open up new opportunities for long-term economic growth in the world.