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No green bonds have yet been publicly listed on the Malta Stock Exchange, despite a legal framework for bonds in industries serving climate change mitigation and adaptation, the circular economy. and the restoration of biodiversity.
Malta’s inertia in these green financial instruments was explained by Central Bank experts who surveryed both potential issuers and investors, who said it should be the government to jump-start investment in this sector with its own green bonds.
The economists found a mismatch in the market, marked by an apparent demand for green bonds from potential investors but a reluctance from issuers who “lack the necessary knowledge and interest in tapping this kind of investment opportunity.
In fact, just 13% of financial issuers have considered the issue of green bonds to finance sustainable projects. Of these, 80% said they are likely to issue a green bond within the next five years.
In contrast, 90% of potential investors said they were willing to invest in locally-issued green bonds in the future.
From the survey results it is apparent that “a market leader is necessary to jumpstart the local green bond market as such a move might diminish uncertainty in this market for both issuers and investors, encouraging more active market players”.

ARTICLE WRITTEN BY MALTA TODAY

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