Notable fixed income fossil funding deals 2021

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In time-honoured tradition, this is the Anthropocene Fixed Income Institute’s second (subjective) list of notable fixed income fossil funding deals of the year.

This non-exhaustive list does not rank the deals but highlights how and when bond market funding has fixed capital into fossil fuel value chains, and the inherent risks, as global economic growth decouples from increases in green house gas emissions.

What these deals generally have in common is that they are not well-described to end-investors in related fixed income instruments. We have sought to broaden understanding and transparency, and provide alternative perspectives on how to interpret the deals.

Investors should be given the opportunity to make funding decisions based on full information. For example, full disclosure on the SUEK Russian thermal coal deal (featured in 2021’s “notables” list) would have helped investors with exposure to the deal to consider index exclusions.