Top green bonds media stories for Aug, Sept & Oct - BBC, Guardian, Institutional Investor, Reuters, Bloomberg, Financial Times, The Actuary and more


High profile backing for green bonds came in September from Bank of England Governor Mark Carney. Global media took notice.


BBC, Mark Carney: Green finance 'a major opportunity

"The development of this new global asset class [green bonds] is an opportunity to advance a low carbon future while raising global investment and spurring growth," said Mr Carney.


Guardian, Carney backs green finance to cut emissions and boost growth
Katie Allen, Phillip Inman

Mark Carney said more of the $100 tn (£76tn) held by big global investment firms could be channeled into green bonds to help finance initiatives such as water or renewable power projects aimed at reducing carbon emissions.


Reuters, Bank of England's Carney calls for progress on green bonds

Carney said total issuance of so-called green bonds -- for example, to help finance water or renewable power projects aimed at reducing carbon emissions -- could double in 2016 from last year's $42 billion.


Institutional Investor, Could Standardization hurt the green bonds market?
Katie Gilbert

The debate over market influence of stringent criteria for green bonds continues.

Sean Kidney, CEO of the Climate Bonds Initiative, thinks the green bonds market still has a room for consumer protections to ensure high quality offerings. These safeguards will become even more important when the market expands beyond the blue-chip bonds into high-yield sector, he reckons.


EY RECAI, The green bonds market powers up (PDF)

Big piece on green bonds and a cover page in the latest issue Renewable Energy Country Attractiveness Index (RECAI) published by EY.

“The main problem is getting new green bonds into the market,” says Sean Kidney, CEO of the Climate Bonds Initiative. For all the growth in issuance, sales of new green bonds are typically heavily oversubscribed; this offers a marginal pricing advantage to issuers. Rather than having to price new issues at a slight premium to entice investors, organizations selling green bonds can often price them in line with existing debt.


The Actuary, Green shoots in the green bonds market?
Kate Brett & Christina Teague

The world takes notice of green bonds – so does the Actuary, the leading UK publication for the actuarial profession. The reaction in our office was: nevermind the Economist, FT and Bloomberg. Green bonds made it to the Actuary!

As with any developing area of the market, many questions remain. However, there is potential for significant and rapid growth. Historical barriers, including standardization, supply and market scale, are beginning to be overcome – and we might just be seeing the green shoots of something much grander. 


IFR Asia, The inevitability of going Green
Jonathan Rogers

Following the ‘green’ COP21 and the inclusion of green finance as a critical input into the future of global economy by the G20, Jonathan Rogers says there is no escaping the green revolution in capital markets. Green bonds get a lot of his attention.

Add in the fact that the product doesn’t price through the implied curve for conventional issuance and you begin to wonder why the Green bond market is in its prevailing gangbusters state. It’s estimated that the Green bond market will smash last year’s US$44bn total for global issuance and break through the US$100bn mark by the end of this year.


Investments & Pensions Europe, ESG: Green bonds get G20 boost
Susanna Rust

Indeed, the green bond market looks to be going from strength to strength. This year so far issuance volumes have already surpassed the total for 2015, according to figures from the not-for-profit organisation Climate Bonds Initiative (CBI). 


Into Africa, Sean Kidney, CEO of the Climate Bonds Initiative tells us why going green is good

Sean Kidney talks to Into Africa about steps governments in Africa need to undertake to foster the growth of green finance.

“Green Bond markets actually start with Sovereigns providing liquidity and pricing. This is a Demonstration Issuance (…). This attracts investors but, this also demonstrates liquidity. Next you need to look at your regulatory framework, the Capital Markets framework is always important for Bond Issuance, for example Kenya which has a very good Capital Markets Authority, has already done this”.


AltEnergy Stocks, Climate Bonds Mid-Year Green Bond Round Up

AltEnergyStocks republished our summary of Q1 and Q2 of 2016.

In the post COP21 and now COP22 shift of focus from agreement making to implementation, green bonds are increasingly being highlighted as part of converting country commitments (NDCs) to climate finance actions.


Environmental Finance, Helping cities in developing countries benefit from the green bond market
Padraig Oliver

Padraig Oliver from Climate Policy Initiative on ways in which cities in developing countries can tap into the green bond market.

Clearly, cities don't necessarily need to issue their own bonds to access capital via the green bond market. City or municipal-based infrastructure development companies could provide one option for them to do so. Such companies commonly raise finance in developing countries such as China, often with central government guarantees.


Environmental Finance, Cities and climate change - the funding gap
Cecilia Reyes

Also Cecilia Reyes from Zurich Insurance explores how green bonds can fund sustainable growth in the cities.

(…)several cities and municipal and transport authorities - including Johannesburg, GothenburgNew YorkSeattle and London – have already issued green bonds. It is expected that New York will spend over $27 billion on green infrastructure, with green bonds presenting a possible financing option.


Bloomberg, In China, Black Is the New Green
Christopher Langner

Author questions the ‘green’ quality of some of the Chinese green bonds. However the announcement of PBOC’s Yi Gang that China will work to set up a more complete green finance system by 2020 instills some optimism.

The PBOC announcement, however, is promising. It signals that officials are aware their approach needs to be fine-tuned. And while Western investors still shy away from Chinese environmental notes, steps are being taken to bring the market up to par.


China Daily, Confusion marring green bonds industry
Wang Yanfei

Author of China Daily’s article refers to Ma Jun, chief economist at the People's Bank of China's research bureau, who expressed concerns over the lack of clear definition in the Chinese green bonds market.

Although China has now become the largest issuer of green bonds - at a total value of 120 billion yuan ($17.99 billion) in the first seven months of this year - a lack of a clear definition of what can be deemed green may limit the appeal to investors, according to Ma.


South China Morning Post, What is green? Green bond investors in China need an answer
Cathy Zhang

Worries over green credibility of Chinese green bonds persist.

A notable feature of the Chinese guidelines, as compared to other markets, is that they permit the operators of clean coal facilities to issue green bonds, even though it is internationally accepted that the funding of fossil fuel power generation does not qualify for green bond classification.


Claxin Online, Loopholes Linked to Third-Party Verification Undermine China's Green Bond Market, Says Economist
Wu Hongyuran

A good analysis of the fledging green bonds market in China. Author refers to remarks made by Industrial Bank Co. researcher Tang Weiqi.

Because green bonds were less costly and more attractive than their traditional counterparts, some companies have attempted to disguise traditional bonds as climate bonds, Tang said. To combat such dishonest practices, he advised releasing detailed national guidelines for third-party verification procedures and stricter licensing requirements for verification agencies. 


Climate Change News, UK pitches China for climate-friendly finance trillions
Ed King

Ed King on UK-China collaboration in green finance.

“We need activist global leadership between China and the UK,” said Sean Kidney, head of the London-based Climate Bonds Initiative.


China Daily, China bonds get new tinge: green
Wu Yiyao

Overview of the green bond rise in China inspired by the recent China Three Gorges Corp issuance.

The timing also appears to be just right for the green bond market to develop in China. The country is making efforts to transform its economic growth pattern so it could make more with less, said analysts.


Blue & Green Tomorrow, CCC Launches New Partnership With Climate Bonds Initiative & CECEP

In association with the China Central Depository & Clearing and CECEP Consulting, we have launched world's first Climate-Aligned Bond Index.

The launch of ChinaBond China Climate-Aligned Bond Index now provides a series of indicators to reflect the price change of overall climate-aligned bond market and climate-aligned investment performance benchmark for domestic and foreign investors.


Global Capital, Asia’s green debt needs bigger state support
Narae Kim

Another area where a government can play a more active role is to align rules with international guidelines. China’s Industrial Bank’s green bonds, sold onshore, can be an example, said Sean Kidney, chief executive of the Climate Bonds Initiative.


Climate Bonds Standard

In August we released emissions performance trajectories for Australian commercial buildings. October then saw the approval of the new criteria for climate-resilient water bonds. This and other Climate Bond Standard news was covered by the media.


Australian Financial Review, City-by-city system benchmarks building carbon emissions for investors
Michael Bleby

The carbon emissions of commercial office buildings in Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra can be measured under a new standard designed to make it easier for institutional investors wanting "green" assets. 


The Fifth Estate, Release of climate bond emissions trajectories set to boost green building investment
Cameron Jewell

Investors can put money in green buildings and be assured they’re helping to meet global climate change targets, following the release of emissions performance trajectories for Australian commercial buildings by the Climate Bonds Initiative.


Investor Daily, Property carbon emissions tool released
Killian Plastow

Climate Bonds Initiative chief executive Sean Kidney said the trajectories should “spur green property development in the commercial heart of Australia’s major cities” and assist in the reduction of carbon emissions.


Blue & Green Tomorrow, Green Property Bond Investment In Australia Receives A Boost

These trajectories have been set by examining the emissions performance of the top 15 per cent of office buildings in each market, and then determining the trajectory required to achieve zero emissions by 2050.


Climate Control News, Tools to measure commercial property developments and retrofits
Sandra van Dijk

Climate Bonds Initiative provides an easy-to-use CO2 Target Calculator on its website to enable issuers to ascertain the emissions performance targets that must be satisfied in order to gain Climate Bonds Certification.


Blue & Green Tomorrow, New Standard for Climate-Resilient Water Bonds Given Go Ahead

The Climate Standards Board has approved a new standard for climate-resilient water bonds, providing investors with a verifiable, science-based screening process to evaluate bond investments earmarked for financing sustainable water-based infrastructure projects.


FTSE Global Markets, PwC UK confirmed as Approved Verifier to Climate Bonds Standard

Climate Bonds Initiative (CBI) CEO Sean Kidney explains that, “As an Approved Verifier they can support green bond issuers in every corner of the planet; that will make a significant and sustained contribution to the rapid scaling of the green bonds market”.


The Rockefeller Foundation, Bridging the Climate Finance Gap: Green Bonds

In an article for the Rockefeller Foundation, Justine Leigh-Bell and Anna Creed talk about Climate Bonds’ mission and the sector Criteria that are being developed as part of the Climate Bonds Standard.

The Standard is designed to bridge the gap between the supply of green infrastructure development plans required to meet national commitments under the Paris Agreement on one side, and investor demands for climate action on the other.


NTPC bond

India’s largest power utility, the giant NTPC issued its first green Masala bond. It’s a Certified Climate Bond with the use of proceeds allocated to solar and wind power projects in India; it garnered a lot of media attention. 


Financial Times, India’s top power group sells ‘green’ masala bond
Jennifer Hughes

India’s largest power group has raised Rs20bn ($299m) in masala bonds and added a twist to what is only the second deal in the sector by designating the issuance “green” — a particularly hot label this year.


Barron’s, Can India Finance Green Energy With Masala Bonds?
Dimitra DeFotis

Oil importer India is looking to spice up its bond market with rupee-denominated offshore “masala” bonds for developing green energy projects.


LiveMint, NTPC raises Rs2,000 crore via green masala bonds on LSE
Aditi Khanna

The listing follows the visit of power minister Piyush Goyal to the UK earlier this year to strengthen UK-India collaboration on power and renewable energy.


The Hindu Business Line, Recent Masala bond issuances to pave way for opening up the market, says Fitch Ratings

The recent issuance of the first offshore masala bonds (rupee-denominated bonds in overseas markets) by Indian companies could pave the way for a broader opening and development of the market, according to Fitch Ratings.


Reuters, India's Masala movement gets a green injection, Krishna Merchant

It is the third Indian company to issue so-called Masala bonds since HDFC opened the market last month, and the first to carry a green label. 


Business Standard, NTPC lists world's first green Masala bond by an Indian issuer on London Stock Exchange

The bond is Climate Bonds Initiative certified and will be listed on London Stock Exchange's green bonds segment.


Country editions of the State of the Market report

Our global July launch of the State of the Market Report was followed by several releases of the local versions of the report. This included Brazilian, Mexican and recently: Canadian and Indian launches. The latter coincided with the first meeting of the new Indian Green Bonds Market Development Council. Here is how these were covered in the media.


La Tribune, Obligations climatiques : la France dans le podium des trois plus grands émetteurs
Giulietta Gamberini

French daily newspaper on our Bonds & Climate Change. State of the Market Report 2016. The report found France to be the third largest issuer of climate-aligned bonds.

Si en matière d'énergies renouvelables la France est en retard, elle est néanmoins très active sur le marché des obligations climatiques. Des 694 milliards de dollars (…) en cours au niveau mondial, 9% (…) ont été émis sur le marché français, relève une étude réalisée par la Climate Bonds Initiative (CBI) sur demande de la banque HSBC.


Blue & Green Tomorrow, Bonds and Climate Change: State of the Market 2016 Mexico Edition Launched

In Mexico, there are $1.3bn in climate-aligned bonds outstanding; including the country’s only labeled green bond ($500 million) issued by Nacional Financiera (NAFIN). Although climate-aligned issuances in the country have been small, the potential for future issuances is vast, considering Mexico’s ambitious climate goals.


Blue & Green Tomorrow, Slow Growth For Green Bonds Market In Canada

Canada’s climate-aligned bond market has grown to C$32.9bn – making Canada’s markets the 5th largest in the world.


Environmental Finance, Canadian government urged to support green bond market

In a report co-authored with the Climate Bonds Initiative (CBI), the SPI suggests that a lack of understanding of the benefits of green bond issuance among potential issuers may be the main barrier to the market's growth. "Government issuances and government policy actions" could help overcome these barriers", it says.


PV-Tech, India’s green bond market surges in 2016 – CBI

India’s green bond market took off this year becoming the seventh largest labelled green bond issuer with US$2.7 billion issued as of 12 October, according to the Climate Bonds Initiative (CBI).


India Climate Dialogue, India’s green bond market expands

India has emerged as a good destination for investors wanting to put their money in projects with a low carbon footprint.

More media coverage of the Bonds & Climate Change. State of the Market 2016 here.


Quarterly green bonds figures

Moody’s quarterly calculation put China in the leading position among green bond issuing countries. The country’s issuance accounts for 44% of the total figure.


Reuters, China leads record global green bond issuance in Q3 - Moody's

China led the surge in global green bond issuance in the third quarter which amounted to a record $26 billion, a report from Moody's Investors Service said on Tuesday.


FTSE Global Markets, Green bond volume for third quarter points to another yearly record

"The volume for the third quarter pushed green bond issuance for the first nine months of the year to $63.2bn, an increase of 132% from the $27.2bn issued a year ago", says Henry Shilling, a Moody's senior vice president. 


China Daily, China leads global Q3 green bonds issuance: report

Significant issuances from Chinese banks marked a return of the pattern observed in the first quarter, leading China to account for 44 percent of global issuances.


Luxembourg Green Exchange

Financial Times, Luxembourg launches world’s first ‘green bond’ platform


Reuters, Luxembourg Stock Exchange launches green bond platform

The Luxembourg Stock Exchange launched a platform for green bonds on Tuesday, called Luxembourg Green Exchange (LGX), to set a new benchmark for the growing market.


Bloomberg, World’s First Green Securities Exchange Announced in Luxembourg
Anna Hirtenstein

It intends to act as a gatekeeper for green bonds and other environmentally-focused financial instruments to help reduce ambiguity in the market.


Pensions & Investments, Luxembourg Stock Exchange launches first green securities platform
Sophie Baker

Only issuers that comply with “stringent eligibility criteria” may gain access to the platform, which aims to set a new benchmark for the green financial instruments market.


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