The UK garnered record demand for its second syndicated green bond issue on Thursday. With the arrival of the European Union on this market, the multiplication of issues can cause bottlenecks.

The order book exceeded £74 billion, 12 times the supply of £6 billion. On Wednesday, Italy's green paper supply garnered 55 billion euros of demand for a 5 billion placement in syndication. A success that Germany did not encounter in its Bund green award. The supply of 3 billion euros in securities received only 1.8 billion in demand. The abundant supply of sovereign ESG (environment, social and governance) paper is nevertheless an important factor that could play into the dynamics of emissions. Beyond emissions competition, the EU's ESG program poses another challenge. “The latter must issue 250 billion euros in green bonds, in the event of maximum use of the recovery plan, which corresponds to as many green projects, notes the banker. One can wonder to what extent there will be enough projects for sovereign issuers to issue green bonds. The question applies less to large issuers such as France, Germany or Italy but more to smaller sovereign issuers who have not yet issued in this format. It may be more difficult to position oneself, thereby reducing the development potential of this market.