The Green Bond Principles were published by 13 banks in January this year to encourage transparency, disclosure, and integrity in the Green Bond market. (We expressed our support for the initiative as a useful step to drive the market forward.)
It was announced yesterday that another 12 banks were signing on to the Principles and that the International Capital Markets Association (ICMA) had taken on the job of providing Secretariat services. This is good news.
A governance framework for the Principles was also announced; it allows for stakeholder input into the Principles and sets out the membership eligibility, which requires organizations to have issued, underwritten, or invested in Green Bonds. A new executive committee will include underwriters, issuers, and investors with global geographic representation.
The original signatories were the four founding banks – Bank of America Merrill Lynch, Citi, Crédit Agricole CIB, and JPMorgan Chase – and nine others: BNP Paribas, Daiwa Capital Markets, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, Rabobank, and SEB.
The new signatories are Barclays, BMO Financial Group, Credit Suisse AG, DNB, DZ BANK AG, ING, Lloyds Bank, Mitsubishi UFJ Securities, Nomura, RBC Capital Markets, Santander, and Société Générale.
Now the question on my mind is can they make it 100 banks by the time of the UN Secretary General's Climate Summit on 23 September this year? It would be a great story for Ban Ki Moon to highlight, in contrast to the depressing lack of progress in the UN climate negotiations. Go on folks!