Green Bonds and the Pathway to Sustainability

By William Sokol, VanEck Senior ETF Product Manager In 2018, reports from the Intergovernmental Panel on Climate Change and the U.S. National Climate Assessment provided at least two grim conclusions. First, climate change is already occurring and significantly impacting millions of people in the U.S. and around the world on a daily basis. This may include hotter temperatures and more frequent extreme weather events, or as is the case for many in the developing world, food and water shortages, displacement from their homes, or increases in infectious diseases. Second, if we are to meet the goal of limiting additional warming to 1.5⁰ Celsius above pre-industrial levels, unprecedented action must be taken immediately. Existing infrastructure is not equipped to handle the consequences of rising temperatures, and new technologies are needed for both mitigation and adaptation to this new reality.