Amy Kennedy Quoted in IFLR on Transition Bonds’ Impact on Climate Change

IFLR has quoted Akin Gump corporate partner Amy Kennedy in the article “Transition bonds could have more impact than green bonds.” The article reports on whether transition bonds will be more successful in tackling climate change concerns than green bonds.

Transition bonds, the article says, will permit brown industries to raise capital with a view to becoming less brown and eventually transition to green or greener activities. What constitutes a successful transition, though, is not clear.

According to the article, creating subjective goals remains a priority since subjectively assessing how “green” a company has become can be difficult.

“If, for example, a company has agreed to reduce emissions by 5 percent each year and for some reason they have not met their threshold, there’s an event default and the money gets called due,” said Kennedy. “That’s not how these transition bonds are set up generally. It’s more about softer targets but these are harder to assess.”