Invest in Climate-aligned Bonds
Moving capital markets for a low-carbon, climate-resilient future
Invest in Climate-aligned Bonds
Moving capital markets for a low-carbon, climate-resilient future
A targeted focus
Unlike green bonds which accommodate broad environmental aspects, CABs target climate change issues.
Unlabelled potential
CABs support climate-aligned initiatives but have not been labelled as green by their issuers – and are therefore likely to go unnoticed by prospective investors.
Pure-play issuers
Where labelled green bonds are primarily issued by diversified companies, the unlabelled portion of the CAB universe derives mostly from pure-play issuers.
Wider investment opportunities
The CAB universe expands opportunities for building climate-themed portfolios beyond labelled green bonds.
Runway for growth
The CAB market size exceeds US$1 trillion and is expected to mature by 2029.
Uncover possibilities
CABs identify untapped areas of potential where future green bonds can be labelled.
The Climate Bonds Initiative (CBI) is an international, investor-focused, and not-for-profit working to mobilise the US$100 trillion bond market to drive economies’ climate resilience.
In 2021, DBS sponsored the flagship Climate-aligned Bonds & Issuers Research Report. The report sheds light on capital flows financing green assets that may not be as visible and transparent as labelled bonds, and identifies opportunities to scale-up the labelled green bond market.
China is home to the most Climate-aligned Bonds
Globally, China leads the trend in Climate-aligned Bonds, accounting for over a third of outstanding bonds. China-based transport companies dominate the Asia-Pacific climate-aligned scene.
Opportunities in developed markets
Developed markets present immense potential for refinancing opportunities, with more than half of the CABs set for maturity by 2029. This will likely boost green labelled bond issuance.
Emerging markets are transiting to climate resilience
Emerging markets are feeling the pressure to accelerate their shift towards sustainability. This could spell greater possibilities for green labelled bond issuance, particularly in renewable energy.
