The green bond stories have come in a flurry over the last 10 days. Here’s five we think you won’t want to miss.
NY Governor Cuomo Launches USD 100m Certified Climate Bond for Affordable Housing
The announcement by Governor Andrew M. Cuomo that the New York State Housing Authority (NYSHA) had gained Climate Bonds Certification for almost USD 100m of green bonds for low carbon housing, caused quite a stir at the Governor’s recent Sustainable Development conference.
To quote from the release:
“New York is now the first state in the nation to have its affordable housing bonds certified by The Climate Bond Standards Board, on behalf of the Climate Bonds Initiative, an international not-for-profit organization supporting financing for projects around the world that help reduce the impact of climate change.”
Governor Cuomo:
"Green Bonds are an innovative tool to build cleaner, greener, affordable housing and place New York at the forefront of sustainable development.”
“New York leads the nation in pioneering solutions to 21st century challenges, and these Green Bonds will provide hundreds of new housing units to New Yorkers in need, while reducing carbon emissions, mitigating the impact of climate change and creating a more sustainable future for all New Yorkers."
We’ll be discussing this bond further in the future, meanwhile you can read the full announcement here.
Watch Governor Cuomo talk sustainable and affordable housing, green growth and new economy to a packed conference hall here.
Climate leadership comes in many guises, from 4.10 mins to 30.15 mins Governor Cuomo shows some of his.
Meanwhile on the West Coast
San Francisco Public Utilities Commission (SFPUC) have just announced their second Climate Bonds Certified water issuance, with a USD 256m offering as part of their USD 4.8bn Water System Improvement Program (WSIP). This is one of the largest water infrastructure projects ever undertaken in the US.
Blog readers with good memories will have noted SFPUC led the world in May this year with the first Certified Climate Bond issued under our sparkling new Water Criteria.
Plaudits for SFPUC
We’ll have more to say in our December Market Blog due out next week. Meanwhile, plaudits for SFPUC for showing the way on matching long term green financing with climate resilient water system upgrades.
Well done!
Mexico: Momentum on Climate Finance
In another sign of growing momentum around green finance, the newly minted Consultative Board for Climate Finance (CBFC) held a press conference in late November outlining its national role to stimulate green investment.
You can read an El Economista story (in Spanish) here.
The activity of this Board is one to watch:
- It’s a joint project of the Mexican Stock Exchange (BMV) and the Climate Bonds Initiative.
- The Board is formed by a co-led presidency headed by Enrique Solórzano, general director of Afore Sura and Tonatiuh Rodríguez general director of Afore XXI Banorte.
- The Board has diverse representation from major local pension funds, insurance companies, development banks and investment funds.
- Mexico2 is providing technical support.
The CBFC has a broad role:
“The Consultative Board for Climate Finance will have the key responsibilities of directing investment portfolios towards green financing and fostering new regulation and investment mandates.”
“In parallel, it will seek to create incentives in special purpose vehicles through the Mexican Stock Exchange to bolster the nascent green market. “
“Another vital duty the Board will undertake is to create institutions that may certify green projects. This market will oversee that projects comply with international green criteria.”
Over the last 12-18 months we’ve blogged developments in Mexico here, here and here as Climate Bonds, MexicO2 and local stakeholders have worked together on the formation of this group.
There’s more to come from Mexico, before year’s end, into 2017 and beyond.
The CBFC is only just getting started.
BNDES, Brazil and tomorrow’s New Economy roadshow in London
It’s one of the largest development banks in the world.
So the move by BNDES to launch a R$500 million (USD144 million) green bond fund to buy domestically issued renewable energy bonds in the run up to tomorrows Investor Roadshow for Brazil’s New Economy in London is significant.
The fund will also be a Climate Bonds Partner, our first in Brazil.
The Sustainable Energy Fund (Fundo de Energia Sustentável) will begin operations by mid-2017 and is intended to lead private sector investment and spur the growth of the domestic Brazilian green bond market.
It’s a neat example of the expanded role for DFIs that many climate finance sessions at COP22 canvassed in their discussions.
London Stock Exchange and Guildhall to Host Brazil Representatives
The Brazil New Economy event on the 8th will see BNDES join major companies CPFL Renováveis, Ecoagro, Klabin and Suzano in presenting to an international investor audience on sustainable investment opportunities in Brazil.
Suzano have just released their second green bond, following their initial USD 500m July issuance.
Regular Blog readers will recall our various updates and the engagement activities being led by our Director of Market Development Justine Leigh-Bell.
More analysis of the BNDES fund will follow in our December Market Blog.
Best wishes for tomorrow
Meanwhile our best wishes go to the London Stock Exchange, Guildhall and all our Brazilian guests in London tomorrow.
Climate Bonds Initiative Annual Conference 2017 and Green Bond Awards-March 6th.
Monday March 6th 2017 has been set as the date for the Climate Bonds Annual Conference 2017 with a full-day event and agenda in London and an international mix of participants including institutional investors, asset managers, bond issuers, regulators and global development banks.
Green Bond Awards to follow
That same evening, the 2nd annual Climate Bonds Green Bonds Awards ceremony will be held, a follow up to our pioneer 2016 event.
A formal Save the Date will go out next week.
#CBIac2017, you read it here first.
‘Till next time
Climate Bonds Communications
Disclaimer: The information contained in this communication does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.
