Modern cities require sustainable, smart and clean transportation systems. At the same time modern investors are increasingly drawn to innovative and socially responsible investment opportunities. As of November 2019, Singapore based entities have raised US$2.9 billion in capital through the issuance of green bonds to finance environmentally beneficial projects, however none specifically targeted at clean transport solutions. In contrast, within the global green bonds market 15% of 1500+ issuances have raised capital for the primary purpose of funding clean transport projects, with a combined issue value of US$94.3 billion. These range from corporate issues to expand mass transit systems, to sovereign green bonds raising proceeds to deliver electrified public transport infrastructure. This seminar will provide a ‘lessons-learned’ reflection on cases where green financing has intersected with the delivery clean transport solutions. In so doing, it will address the challenges, opportunities, and priorities for the wider deployment of green finance. These span infrastructure, regulatory (both local and global) and financial considerations playing a crucial role in cultivating advanced financing opportunities to deliver smart and clean transport systems.
About the Speaker
 Dr David Broadstock is Deputy Director of the Center for Economic Sustainability and Entrepreneurial Finance at the Hong Kong Polytechnic University. His work and research experience spans transport and energy economics, and recently delves into the complex dynamics of responsible investment practices. David is an active scholar, with around 40 academic articles, primarily on economic topics, including energy finance, but also with contributions in business management and accounting, and currently serves as Editor for The Energy Journal. Prior to moving into university, David worked within a global consulting firm, specializing in the planning and delivery of major projects within the transportation sector.
Summary:
Professor David Broadstock from Hong Kong Polytechnic University gave a presentation on the growth of green bond market and how green bonds can be used in the transport sector. He began his presentation with an overview of green bonds market. Since the first green bond, issued in 2007 by the European Investment Bank, the market has shown continual growth and the cumulative green bonds reached more than 1,500 issuances and approximately US$ 506 billion as of 2019. Singapore based entities have raised US$ 2.9 billion through the issuance of 11 green bonds to finance environmentally beneficial projects. He pointed out the insufficiency of green bonds in transport sector: only 17% of global issuances have raised US$ 94.3 billion for clean transport projects. Following that, he explained ‘awakened’ economies issuing green bonds have higher productive efficiency and smaller technology gap between currently used technology and the best technology based on meta-frontier framework. In conclusion, he summarized opportunities and challenges for global and Singapore’s green bonds market to expand investment in clean transport. He also emphasized that policies to promote liquidity of green bonds, incentivize uptake, educate potential users and eliminate ‘green wash’ have to be developed to overcome the challenges.
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