EEMEA | ESG & Climate Change | Europe | Rates
The carbon intensity embedded in South African government bonds sharply contrasts international peers. Consequently, a growing segment of offshore investors are having challenging conversations with end investors and regulators. And forthcoming EU rules on the carbon intensity of portfolio disclosures will now accelerate and strengthen the trend.
South Africa must move much faster to establish a larger, more liquid green bond segment. That will happen only with a mixture of net-zero targets, faster and more credible renewable energy procurement pipelines, and a liberated energy market combining to create a corporate green bond market. Sovereign green bonds and Eskom transition bonds will also be key to keep a growing segment of carbon-averse offshore investors engaged in South African risk.
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