Investing in a sustainable future: Renewable energy
Green bonds are financial instruments designed to raise funds for projects that deliver positive environmental impacts.
Key facts and trends in renewable energy
The road to net zero by 2050
To reach Net Zero by 2050, approximately US$4.5 trillion is required annually by 20303, mostly in renewable power, grids, storage, and efficiency. In 2024, global investments in clean energy totaled approximately US$ 1.7 trillion4, suggesting a shortfall of US$2-2.8 trillion annually.
Where do green bonds fit in?
Smart Energy Solutions
Eligible Projects Financed
- Renewable energy (solar, wind power generation, hydropower with sustainability safeguards)
- Grid infrastructure upgrades and interconnections
- Battery and storage projects
Case study
Colbún S.A. - A Green Revolution in Chile
Colbún S.A. is a major Chilean electric utility company that produces, transmits, and distributes electricity primarily across the central and southern regions of Chile. The company is committed to achieving carbon neutrality by 2050 and plans to phase out from coal by 2040, with the closure of its last coal power plant.
Its Green Financing Framework, published in 2021, supports projects that enhance energy efficiency and promote renewable energy. The company has also implemented adequate measures to manage and mitigate potential environmental and social risks associated with the projects financed under this framework.
By issuing its first green bond, Colbún is financing two major projects focused on wind and solar energy. The Horizonte Wind Farm project harnesses strong winds to generate large-scale energy, while the Diego de Almagro solar project produces solar energy combined with battery storage for enhanced grid flexibility. Together, these initiatives aim to reduce carbon emissions by over 1 million tonnes annually, create hundreds of jobs, and engage local communities through training and supplier inclusion, all while supporting Chile’s ambitious climate goals.
Green bonds are one of the most appropriate debt instrument to accompany issuers committed to transition to a low carbon economy. It supports the decarbonization of the energy sector by channeling capital towards projects that reduce GHG emissions and provide investors with a higher level of transparency and measurability. Contact us to explore more.
Sources:
[1]Source: Global Greenhouse Gas Overview by United States Environmental Protection Agency. Data from IPCC (2022)
[2]Source: IEA https://www.iea.org/data-and-statistics/data-tools/greenhouse-gas-emissions-from-energy-data-explorer
[3]Source: World Economic Forum IEA: Clean energy investment must reach $4.5 trillion per year by 2030 to limit global warming to 1.5°C | World Economic Forum
[4]Source: IEA’s World Energy Investment 2023
[5]Source: Colbun's Green Bond Impact Report June 2023
Disclaimer
This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.
Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.
All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone.
Some of the services listed on this Website may not be available for offer to retail investors.
This Website has not been reviewed by the SFC. © 2025 AXA Investment Managers. All rights reserved.