Update: Green indices reject Repsol’s “green bond.”
Unlike green bonds that finance renewable energy projects or new infrastructure, Repsol intends to use the €500 million ($543 million) raised to pay for energy efficiency upgrades in its oil and chemical refineries.
Such operational savings would drive Repsol’s profitability in the oil company’s core fossil fuels business.
That has some investors crying foul, Environmental Finance reports [paywall]. “My fear is that this one could push investors away from green bonds,” one investor said.
The green bond market is booming, with estimates of 2017 issues ranging from $130 billion to more than $200 billion — compared to $86 billion last year.