Joburg, Gothenburg fund projects with green bonds
Johannesburg, South Africa and Gothenburg, Sweden are among the latest cities to issue “green bonds” to finance initiatives designed to reduce pollution and promote renewable fuels. David Thorpe, special consultant to the Sustainable Cities Collective, documents the trend in a blog post.
A $143 million green bond issued by Joburg this month will fund solar and biogas projects. In an announcement, the city said the bond would “improve and expedite the implementation of its climate change mitigation strategy.” The bond matures in 2024.
In September, Gothenburg debuted a $76 million green bond with a six-year duration that trades on the London Stock Exchange. The bond will be used to fund transportation, energy, water, and waste management projects, according to Stockholm-based SEB, one of the banks involved.
Meanwhile, Toronto was an early adopter of green bonds. The Toronto Atmospheric Fund, established in 1991, finances a range of renewable energy efforts and the conversion of street and traffic lights to energy-saving LED versions.