Mirabaud's Lake: Do not neglect transition bonds during green revolution

By the end of 2021, the total size of the green bond market will be about $1trn. While this growth underscores the importance of green bonds in funding low carbon environment projects, we fear climate conscious investors are neglecting a huge and equally important portion of the bonds space: transition bonds. These bonds are issued by higher greenhouse gas emitters, which are actively seeking to reduce carbon footprints in line with the Paris Agreement. While highly beneficial in funding environmental projects, green bonds are focused only on low carbon areas. Yet, the biggest c...