Investment - Articles - Biden Presidency may be watershed for US green bond market


Johann Ple, portfolio manager at AXA Investment Managers, said: “If Biden was to win in November and pursue his clean energy agenda - including his pledge to sign the US back up to the Paris Agreement on day one - we would expect to see not just growth of the green bonds market globally but also a rebalancing between the US market and its Euro counterpart.

 “Currently the green bond market is dominated by euro bonds, with Euro-denominated debt accounting for around 60% of the market and this share of the market growing, while dollar-denominated green bonds account for around 30%. 

 “Biden’s appointment could change this, with his $2trn climate plan a real game-changer in terms of the shape of the green bond market, as well as being a huge positive in terms of its overall future growth.

 “US corporate issuance remains broadly on the sideline of the green bond market despite a few notable exceptions including Coca-Cola just last week, but Biden could be the turning point leading the US to take a bigger part in the Green bond market development.

 “Alternatively, if Trump wins, nothing will change. The current administration has largely ignored the move to green finance, and if he wins a second term the US dollar will stay in the euro's shadow within the green bond market."
  

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