Sustainable finance…new theme colors beyond Green being introduced (Current Issue No.3465)

• In the global sustainable finance market, besides Green bonds, there are other types of debt instruments such as Blue, Orange, and Rhino bonds.
• KResearch holds the view that the future may see a variety of sustainable debt instruments – perhaps forming a rainbow of options. Non-financial factors will play a significant role in shaping the directions of financial products.
• These sustainable debt instruments are highly diverse and have the potential for rapid development. Implementation of relevant rules and regulations must therefore be accelerated to keep pace with this evolution. Presently, only Green bonds are governed by enforceable regulations that require compliance from all parties, while issuance of other types of sustainable debt instruments are based on established frameworks or guidelines.