Green Bonds giving green projects & renewables a push forward

On the side-lines of the Paris climate change conference, Climate Bonds and UNEP Inquiry have launched on 9 December “Scaling Green Bond Markets – Guide for the Public Sector.” On 24 November, Barclay Bank’s CEO for Asia Pacific Andrew Jones, talked about his bank’s commitment to Green Bonds and driving investment in low carbon technologies and projects globally. He was speaking at a forum on low carbon investing organised by the European Union delegation and hosted by Barclays in Singapore. Read More

‘Scaling Green Bond Markets – Guide for the Public Sector’

Paris, 9 December 2015 – Climate Bonds and UNEP Inquiry have tonight launched Scaling Green Bond Markets – Guide for the Public Sector during a COP21 Side Event at Shearman & Sterling Paris office.

The Guide is the result of a partnership between the Climate Bonds Initiative and the UNEP Inquiry into the Design of a Sustainable Financial System and contains range of specific actions for policy makers in both developed and developing economies.

Accompanying Scaling Green Bond Markets – Guide for the Public Sector is an Annex from the World Bank Group as an additional resource for policymakers in emerging economies to assist them in foundational bond market development.

The Guide contains three broad categories of recommendations on green bond development for public sector policy makers.

Fundamental actions: establishing a green project pipeline; strengthening local bond markets; strategic public green bond issuance and developing green standards.

Proven Support Tools: strategic public green bond investment; credit enhancement; tax incentives and developing instruments to aggregate assets and structure risks.

Innovative Additions: adjusting risk weightings for green investment and preferencing green investments in central bank operations.

Detailed action plans and international best practice examples on how to grow green bond markets are included to assist in policy development. The application and mix for each country will depend on the specific macroeconomic context and policy priorities.

The findings of this report will also feed into a report by the Organisation for Economic Co-operation and Development (OECD) on green bonds, to be launched in 2016, and country-specific policy reports under development by the Climate Bonds Initiative.

Sean Kidney, CEO of the Climate Bonds Initiative, said:

“This guide can help the public sector in translating aspects of their national INDC objectives into climate finance outcomes. Adding green bonds into the climate finance mix can help the shift of capital to low carbon projects, infrastructure and climate resilient development. Credible, robust and liquid green bond markets can only accelerate the investment directions that INDCs in part, require, to meet individual country targets

“There is clear interest amongst policy makers to scale green bond markets. Here at COP21 green bonds are being identified as a potential new source of climate finance for cities, regions and low carbon infrastructure and projects across many sectors.”

Nick Robins, Co-Director of the UNEP Inquiry, said:

“The potential opportunity of the green bond market has caught policy makers’ attention. There are increasingly examples of governments moving from interest to action. China’s central bank has published a range of ambitious policy proposals for green bonds, with official green bond guidelines launching soon. India’s capital markets regulator SEBI just announced green bond guidelines. In the EU, supporting green bond standards is included in Capital Markets Action Plan.”

“At COP21 many discussions have centered around climate finance and the level of investment needed to bring about low carbon outcomes. Green bond market development is seen as a real option. This report can only assist governments, policy makers and ultimately institutional investors in developing sustainable climate finance outcomes.”

About Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. For more information here. A copy of Scaling Green Bond Markets – Guide for the Public Sector is available here.

About UNEP:  The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment.

The Climate and Clean Air Coalition is a voluntary global partnership of governments, intergovernmental organizations, businesses, scientific institutions and civil society committed to catalyzing concrete, substantial action to reduce Short Lived Climate Pollutants (including methane, black carbon and many hydrofluorocarbons). The Coalition has 11 initiatives working to raise awareness, mobilize resources and lead transformative actions in key emitting and cross cutting sectors. SLCP reduction must go hand in hand with deep and persistent cuts to carbon dioxide and other long-lived greenhouse gases if we are to stay under a 2 degrees Celsius warming limit.  The CCAC Secretariat is hosted by the United Nations Environment Programme.

Source: www.climatebonds.net

Barclays reaches £1 billion Green Bonds target

Barclays Investment Bank reports (17 November 2015):

Barclays today confirmed it has reached its target of investing over £1 billion in Green Bonds and has made a commitment to invest a further £1 billion. This represents one of the largest Green Bond investment commitments by any institution globally.

Last year Barclays announced its commitment to investing at least £1 billion by November 2015, as part of its liquid asset buffer.

Green Bonds are fixed income securities designed to raise capital to finance the low carbon environment. Barclays’ Treasury department has expanded its Green Bonds portfolio across various investment grade issuers including the European Investment Bank and KFW.

In 2014 the green bonds market totalled $36.59bn and current issuance for 2015 stands at $29.66bn*

Commenting on this investment, Tushar Morzaria, Group Finance Director, Barclays, said:

“Barclays has undertaken thorough due diligence to establish the social and environmental credentials of the proposed investment portfolio, including engaging with the issuers and also the leading NGO in this area, Climate Bonds Initiative.”

Sean Kidney, CEO of the Climate Bonds Initiative said:

“Addressing the risk of catastrophic climate change requires commitment; Barclays have shown that commitment can be combined with investing that achieves required returns at the same time. They have shown that, when it comes to the green bonds space, green can and does go with good investment. The one billion marker is a celebration of that.”

* Climate Bonds Initiative, October 2015

Source: www.investmentbank.barclays.com/our-insights/Barclays-reaches-green-bond-target.html