Verizon allocates $1 billion green bond proceeds to renewable energy projects

Verizon Communications fully allocated the $1 billion in proceeds from its May 2023 green bond to renewable energy purchase agreements supporting projects under development in five US states. The fifth green bond since 2019 demonstrates how corporate green-bond issuance funds renewable capacity, a financing model relevant to Indian corporates pursuing renewable energy and green-bond strategies.

Verizon Communications announced it fully allocated the $1 billion in proceeds from its green bond issued in May 2023 to renewable energy purchase agreements (REPAs). This was Verizon's fifth green bond since 2019, supporting renewable energy projects under development in five states including Illinois, North Dakota, Ohio, Maine, and West Virginia, covering approximately 0.9 gigawatts of capacity, of which 47% is wind energy and 53% is solar, according to Verizon's Green Bond Impact Report.

Renewable energy developers and the US electrical grid are affected, as the projects help creators build new wind and solar facilities in 15 states. Verizon has entered into 27 renewable energy purchase agreements for around 3.6 gigawatts of anticipated renewable energy-producing capacity. The renewable projects are expected to enable avoidance of more than 4.7 million metric tonnes of greenhouse gas emissions per year, positioning Verizon as one of the foremost corporate buyers of renewable energy and major green bond issuers in the US.

Stakeholders should monitor Verizon's progress toward its renewable energy targets. The company says it is on track to surpass its goal to source the equivalent of 50% of its total annual electricity use with renewable energy by 2025 and will continue identifying new projects to reach 100% renewable energy by 2030. The $5 billion of green bonds allocated to date support Verizon's objective of net zero emissions in its business operations by 2035, which corporate issuers can track as a benchmark.

Key figure — Green bond proceeds allocated: $1 billion (covering ~0.9 GW capacity)