The auto green bonds do not always price with as substantial a greenium as seen in many other segments of the green bond market. Many are trading flat to vanilla issuance, and some even wider.
We present three ways for different investors to support the sector's clean transition through bond positioning. An estimated 48.6% of oil demand in OECD comes from road transportation where 60-85% is due to cars and light vans. While there is a lot of pressure for energy companies to report and look to reduce their Scope 3 emissions, that seems only possible alongside a meaningful transition away from petrol as a fuel for autos.
At COP26 a deal was announced to end sale of fossil fuel vehicles by 2040 or earlier, however also notable was the absence of certain countries and manufacturers.