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Wednesday October 20th, 2021
Economy

Sri Lanka explores green bonds for renewable energy, organic fertilizers: Jayasundera

ECONOMYNEXT – Sri Lanka is exploring green bonds to raise funds for clean and renewable energy projects as well as production of organic fertilizer, President’s Secretary P B Jayasundera said.

Jayasudera, the top most civil servant of the country and former finance secretary, still has significant influence in the economic policies and budget.

“There are so many inquiries and proposals are being put forward to raise money from green bonds,” Jayasundera told EconomyNext.

Green bonds are a growing category of fixed-income securities which are to raise investments and capital for environmental friendly projects like renewable energy.

Nearly $138 billion has now been raised via sovereign green bonds globally with European nations accounting for 90% percent of the issuance, according to a study by law firm Linklaters released in June.

The green bond market started up in 2007.

In 2020, a total of more than 680 green bond issuance were launched globally in 2020, raising a total of $227.6 billion, according to a Linklaters’s previous analysis.

President Gotabaya Rajapaksa administration has banned chemical fertilizers and is now in the process of fast tracking organic fertilizer production to be used in the next “Maha” cultivation season starting in November.

The government has also aimed to generate 70 percent of the electricity from renewable energy in 2030 and 100 percent by 2050.

“The green bonds are for renewable energy plus organic fertilizers and moving away from plastics and going towards electric cars,” Jayasundera said.

Although they make up a small fraction of the overall debt market, green bonds are attracting attention because the need to meet emissions-reduction targets will require trillions of dollars of capital from public and private sectors. (Colombo/Sept 16/2021)

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