CEFC has invested $20 million in green bond worth $50 million in 2016.
Australian government’s Clean Energy Finance Corporation has invested in a new green bond created to support the nation’s nascent home battery storage market. CEFC has reportedly invested $10 million in a green bond issued by FlexiGroup worth $90.9 million, which includes rooftop solar in large portion and small-scale storage receivables in small portion.
As per press release by CEFC, it is expected to install 6.3 million rooftop solar systems with 4.3 million of these systems to be combined with storage by the year 2050. By middle of the century, it is expected that 74% of rooftop solar capacity will include energy storage.
Richard Lovell, CEFC Debt Markets Lead reportedly stated that “energy storage receivables” was a significant market development for Australia. For the record, Australia was one of the world’s biggest sources to issue green bond in Asia Pacific, second only to China. It was important to include “energy storage receivables” in the green note issuance for market development in Australia, he further quoted.
Rebecca James, CEO of FlexiGroup stated that the company is delighted to have support of CEFC in green bond issuance. With every deal closure, the company’s desire to explore the development of new green investment products has increased, she further added.
Australia’s first asset-backed green bond was issued in 2016 by FlexiGroup. CEFC has invested $20 million in green bond worth $50 million in 2016 and further invested $20 million in $50 million green note issuance of FlexiGroup in the year 2017.
Global Climate Bonds Initiative (CBI) has certified FlexiGroup’s green notes in alignment with Paris Agreement goals and proceeds of green bond will be managed appropriately. As per the estimation of CBI, global green bond market will increase from US$167 billion in 2018 to US$250 billion this year and will continue to show sustained growth as investors invest into sustainable investment opportunities.