Mexico passes tough Climate Law: can you hear “nyah nyah USA”? / IaDB CC head argues for 2Gt p.c. C&C / China $476m wind bond / $25m WB Green Bond / DBSA gets Sth African green dvlpt fund job (climate bonds in mix?) / Adventures of a Climate Bonds actuary in Tajikistan

Posted on 20. Apr, 2012 by in Banks, blog, Climate Bonds, Climate Bonds Initiative, Climate Change, CO2, Green Bonds

> Sitting deep in Washington DC’s Inter-American Development Bank (IaDB) HQ this week, at a forum on national development banks and climate change, I heard the IaDB’s climate change head, Walter Vergara talking about Latin America’s huge adaptation as well as mitigation challenge. He noted that the world has to urgently get down to no more than to 2Gt emissions per capita quickly – and of course, that the US is still at 25Gt, and the EU at 15. “I subscribe to the view of contraction and convergence” he said. (My friend Aubrey Meyer, the lone wolf originator of the approach, will be pleased to hear that from a big bank.)

> In the same session Chantal Naidoo of the DBSA (Development Bank of South Africa) announced that the Bank has just been handed the mandate by its govt to manage the country’s ‘green development funds’. We’re hoping DBSA is going to look at climate bonds to fund some of this program, especially as the South African IDC has now done one – watch this space.

> The IaDB forum ended with the announcement that Mexico has just passed it’s Climate Law - requiring emission cuts of 30% by 2020 and 50% by 2050. It also mandates that 35% of the country’s electricity must come from renewables by 2024 and that subsidies for fossil fuels must be phased out (the OECD will be pleased; they’ve been complaining about subsidies).

> In last week’s email I neglected to mention the recent World Bank Green Bond: 5 year, 3.25%. SEK 175,000 000 ($25m).  Total outstanding amount of WB Green Bonds in Swedish Kroner is now 1,575,000,000 ($m). Underwriting again courtesy of SEB’s green bonds team.

> China wind giant Goldwind recently issued a CNY 3bn ($476m) corporate bond. Given they’re a pureplay wind company, we’d call that a climate bond. This is the first phase of a total of CNY 5bn bonds due out.

> At the Climate Bonds Initiative we’re as concerned with climate resilience as with mitigation. Initiative co-founder Nick Silver has been in Tajikistan looking at resilience issues for the World Bank. Have a look at his very entertaining “adventures of an actuary” report.

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