The growing anticipation of green bonds taking off in Asia has determined the flavor of May’s media digest. The widely commented report by Moody’s fits with this trend by pointing to India and China as countries offering ‘sizeable growth potential’.
Asia
Emerging markets, Asia awakes to green bonds, Matthew Thomas
Matthew Thomas talks in-depth about the green bond-issuing trend emerging among Asian borrowers. He rightly points out that “attention the green branding attracts could stimulate the market and create a snowball effect that ultimately benefits the climate”:
It will be some time before green bond issuance really takes off in Asia, but for now, there is plenty of reason to expect that the market will continue to get bigger, and begin to fulfil its destiny of stimulating the greening of the economy.
Global Capital, China eyes Industrial for first green bond, Rev Hui
Rev Hui about the growing anticipation for China’s first green bond:
And even though there is yet to be a green bond from China, Kidney said he believed the sector would grow exponentially in China because the world’s second largest economy is estimated to require yearly investments of at least RMB 2tr ($320bn) for the next five years to meet its environmental targets.
China Daily, Green shoots of new bond market, Cecily Liu
China Daily explores China’s potential to become the world’s largest issuer of green bonds:
China has the potential to become the world's largest market for green bonds because of its government's commitment to tackle pollution by setting up a green financial system, experts say. The government's move to promote green bonds could set an example for other countries and produce the critical mass for the green-bond market to take off globally.
China Daily, Climate's right to grow pro-environment financing, Cecily Liu
Author sees green bonds as a way of executing “climate’s right to grow pro-environment financing” and analyses policy proposals put forward to Chinese policy makers by the Climate Bonds Initiative and IISD in the latest report:
The report included examples of incentives the Chinese government could introduce in the market, one being a central fund to provide partial credit guarantees for green municipal revenue bonds and green public-private partnership project bonds.
China Daily, Planet care and money form a perfect union, Cecily Liu
Cecily Liu’s coverage of the HSBC Beijing forum on sustainable financing held in Beijing - predictions of China becoming a global leader in developing the green bonds market were echoed there as well:
To achieve scale, says Ulrik Ross [global head of public sector and sustainable financing at HSBC], it is important for China to establish transparent standards on green bonds and to establish a system of certifying that the proceeds raised from the green bonds are directed toward environmentally friendly projects.
Sina, 评论：美丽中国需要银行力推绿色债券市场
Comparing Chinese economy to a racing plane, author says it is now time to fly ‘smoothly and efficiently’. He explores green bonds as a measure to shift the country’s growth towards a more sustainable future:
据气候债券倡议组织(Climate Bonds Initiative)预计，2015年绿色债券总发行量将达到1000亿美元，增长幅度将达60%。人们对绿色债券在经济绿色发展中的重要作用已达成共识，正如世界银行[微博]副行长、气候变化问题特使蕾切尔·凯特(Rachel Kyte)所说：“绿色债券为低碳发展创造了一种新型资金流，这一点很重要。不仅如此，绿色债券还具有使资金从传统的化石燃料投资沿着更清洁方向流向可构建全世界低碳未来项目的潜力”。
Sustainable Japan, 【中国】The Climate Bonds Initiative、中国のグリーンボンド市場成長に向けた政策提言書を公表 2015/04/26 最新ニュース,
Japanese news portal coverage of our report ‘‘Growing a green bonds market in China” outlining key recommendations for Chinese policymakers:
報告書の共著者でThe Climate Bonds InitiativeのCEOを務めるSean Kidney氏は「債券市場の改革に向けて中国が掲げた重大なコミットメントは、金融・経済的観点だけではなく、環境面の観点からも期待できるものだ。な ぜなら、それは中国の低炭素経済への転換に向けた債券市場の活用する機会を大きく増やすからだ」と述べた
Novethic, Finance verte : la Chine peut booster le marché des green bonds
High expectations for China to become world’s leader in green bonds also voiced by the French research and news portal Novethic:
Dans un premier temps, les obligations environnementales seront émises par des banques, pour des projets environnementaux, comme 44% des green bonds émis dans le monde en 2014. Les premiers green bonds chinois devraient donc voir le jour en juin prochain, d’après Sean Kidney, le directeur général de Climate Bonds initiative. "Il s’agira d’une grande banque chinoise, mais je ne peux pas dire laquelle tant que ce n’est pas officiel. Ils ont reçu récemment l’autorisation des autorités", indique-t-il.
Moody’s report
Moody’s report “Green Bonds Start to Bloom” was the major source for much media discussion this month. The rating giant’s report said that as developing countries embrace the green bonds market, it’s expected to ‘become more sophisticated’. The report also highlighted the need for the market to take steps to standardize the definition of what a green bond is to increase its credibility among investors.
Bloomberg, Green Bonds Blooming as Developing Countries Enter Market, Louise Downing
“The global green bond market may reach $100 billion this year, triple the $37 billion of 2014, the report said, citing estimates from the Climate Bonds Initiative. Standard & Poor’s in March said China’s entry would be a “game-changer.”
Reuters, Green investment bonds growing but rules needed to boost appeal, Barbara Lewis and Susanna Twidale
"For that share to grow significantly, voluntary guidelines that set out criteria for bonds labeled 'green' will likely have to achieve a greater level of standardization," Moody's ratings agency said in a report.
Global Capital, Green bond market to sprout: Moody’s, Christina Khouri
The nascent green bond market is predicted to continue its strong growth trajectory as Western markets become more sophisticated and Asia begins to play a more active role in green bond activity, according to a recent report released by Moody’s.
Live Mint, Global green bond market touched $37 billion in 2014: Moody’s, Utpal Bhaskar
The global green bond market touched $37 billion in 2014, with countries including China and India offering sizeable growth potential, Moody’s Investor Service wrote in a report.
Market developments
Business Green, Green bonds: Has the market stalled? Will Nichols
Despite disappointing market growth figures in Q1 of 2015, experts from SEB, BNY Mellon's Corporate Trust and the Climate Bonds Initiative express confidence in the green bonds market reaching record issuance of $70 billion by year-end:
"I'm pretty confident we're going to have a good year," Kidney said. "We've still got a fair way to go, but I think $70bn is well on the cards. The stretch goal remains $100bn. But this is a growth market - all we are arguing about is the speed of growth, not whether it's going to grow."
IJ Global, The rise of the green bond, Jinjoo Lee
As the corporate institutions get a handle on green bonds, IJ Global reporter, Jinjoo Lee, takes a closer look at this budding market: he talks about potential for pricing advantage over traditional bonds, additionality and certification:
Vigeo, the Climate Bonds Initiative and DNV GL are among the entities that offer certification services. These entities take different approaches to certification. Vigeo prioritises environmental, social and governance responsibility, while the Climate Bonds Initiative weighs influence on climate change more heavily.
The Fifth Estate, Watch out world: Climate Bonds get their NABERS rating, Tina Perinotto
As the Climate Bonds Standard for the Low Carbon Buildings has been officially launched at an RI 2015 event in London, The Fifth Estate reports on the recent announcement that Australian environmental rating tools provider NABERS Energy ratings contains GHG emissions data immediately suitable for reporting under the Climate Bonds Standard:
Mr Kidney said the good work from NABERS made the adoption of the Climate Bonds Standard easier in Australia.“While the Climate Bonds Standard does not adopt individual rating tools, we feel that those already conducting NABERS ratings are positioned amongst the best in the world to participate in climate bonds.”
Environment & Energy Publishing (E&E), Green bonds, a fast-growing money game with the clout to develop clean energy, await an umpire, Benjamin Hulac
In an interesting article, Ben Hulac recaps a speech by Reed Hundt, CEO of the Coalition for Green Capital, at a conference in Washington D.C. The former chairman of the Federal Communications Commission spoke of the telecommunications boom of the 90s, paid for by ‘borrowed money’, to exemplify the potential for renewable energy market to grow in a similar pattern:
Borrowed money paid for the communications boom, Hundt explained,(…). He added that world leaders should apply the same method to fund the renewable energy market. "I think that we're in the really early days," he said during a panel talk on green bonds, adding that a "total, radical, disrupting overhaul" of the energy sector must be accomplished with a massive lending market and robust debt securitization.
Salt, How to ethically invest, Lee Williams
The new magazine on ethical business set out to turn the walk through ethical investing from a minefield into a stroll in the park for its readers. Green bonds are listed as one of the ‘solid alternatives’ to many of the ambiguous choices that ethical investing offers:
One investment alternative which can provide high yields and positive impacts is the rapidly growing market in green bonds. These bonds, which often fund environmental infrastructure projects that governments are unable to bankroll, have been billed as a way of keeping global warming below 2°C.
GreenBiz, State of Green Business: Money flows where sustainability grows, Libby Bernick
Senior Vice President of North America Trucost, talks about a growing recognition of environmental issues among investors. She lists the ‘rise of green bonds’ as proof of this ‘fundamental shift’:
One reason for growth is the new Climate Bonds Standard, which sets out requirements for issuers, such as reporting the environmental benefits of projects they fund, to ensure that green bonds truly live up to their name.
RTCC, Could green bonds offer a home for capital fleeing fossil fuels?, Megan Darby
Megan Darby explores how green bonds can make use of finance divesting from fossil fuels towards green investments:
Today, says Sean Kidney, governments face a comparable challenge: “We need to see a green infrastructure revolution.” The Climate Bonds Initiative chief argues policymakers can mobilise finance through the bond markets without splashing taxpayers’ cash.
SeeNewsRenewables, JP Morgan is top green bonds underwriter in Q1 2015 - CBI
Renewable energy newswire, active in its reporting of green bonds market developments, publishes our top green bonds underwriters’ league table:
All change at the top of the underwriter’s league table in the first quarter (Q1) of 2015 compared to the standings for the fourth quarter (Q4) of 2014. JP Morgan takes the lead for the first time ever! Despite not being involved in the three biggest deals of Q1, JP Morgan still managed to come out top after underwriting green municipal bonds for Iowa and City of Tacoma.
Umwelt Dialog, MünchenerHyp wird Partner der Climate Bonds Initiative
German news portal Umwelt Dialog reports on Münchener Hypothekenbank eG joining the Climate Bonds Partners program.
>> See our announcement.
Sean Kidney, CEO der Climate Bonds Initiative, sagt: „Die MünchenerHyp hat gezeigt, dass wirtschaftliche Ziele und Engagement für Nachhaltigkeit Hand in Hand gehen können. Die Partnerschaft mit der Climate Bonds Initiative ist ein wichtiges Signal für die weitere Entwicklung des Marktes für grüne und nachhaltige Anleihen.“
ANZ Bank Green Bond
ANZ bank inaugural green bond certified under the Climate Bonds Standard was a hit among investors as well as journalists. Breakdown of the coverage below:
>> see our blog entry
Reuters, ANZ deepens Australia's fledgling Green bond market, John Weavers
Australia and New Zealand Banking Group received a robust response to its inaugural Green offering on Wednesday with a A$600m (US$458m) five-year bond
Environmental Finance, ANZ launches biggest ever green bond from Australian issuer, Katharine Tapley
The transaction was oversubscribed, with the final orderbook reaching A$725 million.
Global Capital, ANZ opens books to debut green bond, Christina Khouri
Boosting ethical investors’ confidence in the note was the bond’s Climate Bond Standards Certification from green financing not-for-profit Climate Bonds Initiative (CBI), as well as the independent verification of the bond against these standards by Ernst & Young.
Investor Daily, ANZ to issue first green bond
The Fifth Estate, Green bonds: ANZ joins the global rush
Energy News Business, ANZ to issue $500m “green” bond
Environmental Finance, Australia's ANZ to issue green bond, Sophie Robinson-Tillett
Business Spectator, Australian investors lap up ANZ green bonds, John Conroy
Global Capital, ANZ's A$600m debut delivers Australia's largest green bond, Christina Khouri
Finsia, ANZ to launch its first green bond, Robin Christie
SeeNewsRenewables, Australia and New Zealand Bank issues AUD-600m green bond, Tsvetomira Tsanova
Project Finance International, Australia - ANZ issues green bond
Blue Notes, Is green debt the answer to climate change?, Andrew Cornell
RenewEconomy, Tide turns on fossil fuels as Norway quits coal, ANZ goes green, Giles Parkinson
