- Sustainability
- Climate-aligned Bonds
Invest in Climate-aligned Bonds
Moving capital markets for a low-carbon, climate-resilient future
- Sustainability
- Climate-aligned Bonds
Invest in Climate-aligned Bonds
Moving capital markets for a low-carbon, climate-resilient future
What are Climate-aligned Bonds?
As investors move towards decarbonising portfolios and integrating Environmental, Social and Governance (ESG) considerations into investment decisions, deals with high climate impact and well-documented green credentials have never been more crucial.
Climate-aligned Bonds (CABs) fill the gap for financing underlying climate-aligned activities that may not be as visible and transparent as labelled bonds, but address climate issues and promote a low-carbon economy. These include the development of renewable energy sources and transport systems.
The CAB universe is worth US$913.2 billion today – nearly half the labelled universe, according to Climate Bonds data. In a space where private capital is key to scaling the low-carbon solutions the world urgently needs, the investment opportunities are substantial.
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A targeted focus
Unlike green bonds which accommodate broad environmental aspects, CABs target climate change issues.
![Unlabelled potential](/documents/37753546/133814591/002.png/dd028063-32e2-282b-a0d8-6dae636b3c1c?t=1576046626457)
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.
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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.
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Wider investment opportunities
The CAB universe expands opportunities for building climate-themed portfolios beyond labelled green bonds.
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Runway for growth
The CAB market size exceeds US$1 trillion and is expected to mature by 2029.
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Uncover possibilities
CABs identify untapped areas of potential where future green bonds can be labelled.