MARKET NEWS & ANALYSIS
Euromoney, Green finance, China-style
Euromoney highlights the very brown “green bond” issued recently by an oil refiner in China that will be used to build a petrochemical complex.
It’s far from unusual. The Climate Bonds Initiative says that China issued $21.8 billion of green bonds in the first half of 2019, up 62% year on year, but that less than half of it would meet international standards on green financing.
Bloomberg, Green Bonds Get Rubber-Stamped as Investors Question the Label, David Caleb Mutua
Bloomberg on the importance of standards and third party opinions in the green bonds market.
Companies and governments typically align offerings with green bond principles and standards endorsed by the International Capital Market Association and Climate Bonds Initiative. But misleading claims about environmental benefits of projects are on the rise, making assurance and second opinions increasingly important to investors.
FT Adviser, Green bonds on the rise, Mitch Reznick
Author highlights the greenwashing risk that stems from the fact that issuing a green bond is often cheaper than going to the market with a regular vanilla bond.
We can all imagine one outcome of this: companies issue green bonds that have less than stellar
‘green’ credentials. For example, recently a US company issued a green bond, the proceeds of which were not used on a green project, but nearly entirely to refinance an existing straight bond.
City A.M., Green Bonds vs. Traditional Bonds, Bill Fung, PhD and Joachim Klement, CFA
Authors look at studies that explore whether green bonds trade at premium.
On the other hand, studies of US corporate and municipal bonds show green bonds trade at a yield premium relative to non-green bonds. Two researchers from the Sorbonne found an 8 bps average yield premium for green versus non-green bonds from the same issuer. In their study, this difference was significant.
The Telegraph, Just how 'green' are green bonds?, Josie Cox
Author praises Enel’s recent green bond issue where the coupon is to increase if the company fails to hit its specific sustainability goals.
Perhaps it’s ironic that it was a greenhouse gas-pumping utility that took the first step towards popularising bonds that really encourage a green corporate strategy. But by doing so Enel has sent a powerful message to others: if I can be serious about this environment thing, then so can you.
Financial Times, UK government hangs back on green gilts
(…) £2bn worth of green bonds were sold compared with €65bn globally, according to Climate Bonds Initiative, an international not-for-profit group. (…) Poland, France and the Netherlands are among a handful of European countries that have already issued green sovereign bonds (…).
BNP Paribas Investors Corner, Green bonds are making a dent, but there is further to go, Xuan Sheng Ou Yong
Author says that central banks are key to unlocking the potential of the green bonds market that must continue to grow.
To successfully finance a low-carbon economy, much more is required. The Climate Bonds Initiative estimates that green bond issuance needs to reach around USD 1 trillion per annum.
BNP Paribas Investors Corner, Should green bonds be considered an asset class? What is an asset class?
Analyst argues that green bonds are not a distinct asset class.
Yet, we acknowledge a peculiarity about some green bonds. They can enjoy a “greenium”, in some instances in the primary market, and in others in the secondary market. Does this peculiarity change how we see green bonds as an asset class? We will define ‘greenium’ and explore this question in part 2.
IISD SDG Knowledge Hub, Institutional Finance Update: Green Bond Issuance Exceeds USD 200 Billion, Beate Antonich
IISD reports on the big news from October when green bonds reached the $200 billion milestone.
Green bond and loan issuance for 2019 surpassed a new record of USD 200 billion in October, setting the stage for the annual issuance to meet the Climate Bonds Initiative (CPI) forecast range for the year of between USD 230-250 billion.
Thomson Reuters Foundation, Innovative financing of resilient food systems key to global security, Alejandro Litovsky
To catalyse the growth of green bond issuance in agriculture, the Climate Bonds Initiative (CBI), a standards-setting body, is developing the taxonomy to guide issuers, banks and investors in developing agriculture-related green bonds.
IMF Finance & Development, A Greener Future for Finance, Afsaneh Beschloss and Mina Mashayekhi
Investors who adhere to the ICMA or CBI guidelines can be confident that they are supporting low-emission infrastructure and deep emission reduction—perhaps to a fault. For example, to avoid controversy, certification to the highest CBI standards skirts climate-relevant and investable areas such as nuclear energy and issues such as air travel.
Markets Media, Investors Want More Corporate Green Bonds, Shanny Basar
Caroline Harrison, research analyst, markets at Climate Bonds Initiative said on the webcast: “There is a mismatch between demand and supply and more corporate issuance should be encouraged by policy makers.”
Expert Investor, Sweden’s $8.3bn green bond issuance outstrips Nordic rivals, Elena Johansson
Sweden has issued a whopping $8.26bn in green bonds so far in 2019, equivalent to about half of
the total issuance across the Nordics, according to data by the Climate Bonds Initiative (CBI).
Business Green, Moody's: Green bonds exceeding expectations, Catherine Early
Ratings agency predicts green bond market to outperform its expectations of $200bn issuances in 2019.
PV Magazine, European Utility Week: ‘The confidence is coming back’, Michael Fuhs
Among other criteria, certifiers such as the Climate Bond Initiative check that no reference is made to the same project more than once. To date, only around 30% are currently certified, he [Sean Kidney] added.
Sovereign green bonds buzz
Reuters, Denmark weighs issuing green sovereign bonds, Nikolaj Skydsgaard
Denmark’s central bank is looking at ways to issue new debt earmarked for green investments, known as green bond (…) The issuance of green bonds (…) has surpassed $200 billion globally so far this year and could rise to $400 billion next year, according to the Climate Bonds Initiative.
Nasdaq, UK debt agency chief says keeps 'open mind' on green bond issue
He said green bond issuance had to have value for money and noted that the British government has made significant steps forward in green initiatives.
Bloomberg Environment, Merkel May Launch 10 Billion Euros of Green-Bond Sales in 2020
German Chancellor Angela Merkel’s government is moving forward on a pledge to lead a public-sector switch to sustainable finance by launching offerings of green bonds in 2020.
Global Capital, Germany to sell up to €10bn of green bonds in 2020
Memorandum of Understanding signed in New York
Climate Bonds Initiative and Brazil Ministry of Agriculture in November signed Memorandum of Understanding to foster growth in sustainable Agribusiness financing.
Beef Point, Em Nova York, ministra assina memorando para emissão de títulos verdes da agropecuária
A ministra Tereza Cristina (Agricultura, Pecuária e Abastecimento) assinou, nesta quinta-feira (21), o memorando de entendimento com a organização não governamental Climate Bonds Initiative (CBI) para desenvolvimento do mercado de títulos verdes do setor agropecuário brasileiro.
Stocks Herald, Not to miss the vizcachazo
In fact, the Minister of Agriculture of Brazil, Tereza Cristina, signed last Thursday in New York a memorandum of understanding with the CBI (Climate Bonds Initiative) for the development of the market for green securities in the Brazilian agricultural sector.
Clarín, A no errar el vizcachazo, Héctor Huergo
Precisamente, la ministra de Agricultura de Brasil, Tereza Cristina, firmó el jueves pasado en Nueva York un memorando de entendimiento con la CBI (Climate Bonds Initiative) para el desarrollo del mercado de títulos verdes del sector agropecuario brasilero.
Comex do Brasil, Tereza Cristina destaca importância de o Brasil vender produtos da soja com valor agregado
Além disso, assinou memorando de entendimento com a organização não governamental Climate Bonds Initiative (CBI) para desenvolvimento do mercado de títulos verdes do setor agropecuário brasileiro.
Capital News, Em Nova Iorque, Tereza assina acordo para emissão de títulos verdes da agropecuária
O ministério informa que está prevista a emissão de cerca de US$ 50 milhões em títulos recebíveis do agronegócio (CRA), certificados pela CBI, o que deve atrair investidores interessados em elevar sua participação em projetos limpos.
Noticias Agricolas, CNA apoia acordo entre CBI e Mapa para emissão de títulos verdes no agro
Dourados Agora, Em Nova York, ministra assina memorando para emissão de títulos verdes da agropecuária
COVERAGE IN FOREIGN LANGUAGES
In Chinese
China Times, CBI獻兩招 助台灣衝刺綠債
氣候債券倡議組織（CBI）統計，今（2019）年第三季全球綠債發行規模628億美元，較去年同期成長87％，全球綠債市場持續呈現仰角成長，其中24％的發行量是金融機構掛名。
The Liberty Times, 我綠債發展 獨步亞洲
氣候債券倡議組織（CBI）執行長Sean Kidney指出，歐、美綠色金融商品蓬勃發展，日本還沒有發行綠債，所以在綠色金融領域，台灣較為領先，且目前的成績相當亮麗。
The Liberty Times, 綠債監管 台灣與ICMA同步
氣候債券倡議組織執行長Sean Kidney表示，發行綠色債券已成為發行人的競爭優勢，藉由發行綠色債券提高公司能見度、發掘新的投資人，同時讓市場了解發行公司對於氣候變遷採取的因應措施。
China Times, 櫃買中心主辦「2019臺北綠色債券國際研討會」 今盛大登場
櫃買中心指出，本次研討會特別邀請金管會顧立雄主委及英國在臺辦事處唐凱琳代表蒞臨致詞，另也邀請氣候債券倡議組織（CBI）執行長Mr. Sean Kidney就「綠色債券市場發展新契機」進行專題演講，並安排兩場專題座談。
In German
Börsen-Zeitung, Grüner Triumph, Kai Johannsen
"Basierend auf diesen Daten wird 2019 erneut zu einem Rekordjahr für Green Finance. Neue Staaten steigen in diesen Markt ein und ursprüngliche Pioniere wie etwa Frankreich, Polen und Nigeria legen erneut grüne Anleihen auf", sagte Sean Kidney, CEO der CBI.
Börsen-Zeitung, Nicht jeder Emittent hält, was er verspricht, Olaf John
2018 kamen nach Angaben der Climate Bonds Initiative Neuemissionen mit einem Volumen von 168 Mrd. Dollar auf den Markt - so viel wie nie zuvor in der bis 2007 zurückreichenden Geschichte dieser Anlageklasse.
Goldseiten.de, Die grüne Welle rollt, Manfred Gburek
Allein schon von daher gesehen nimmt es nicht wunder, dass bislang gemäß der eingangs erwähnten globalen Climate Bonds Initiative über 200 Milliarden Dollar in grüne Anleihen geflossen sind; zudem wird 2019 diesbezüglich ein Rekordjahr.
PV Magazine, European Utility Week: „Das Vertrauen in die Zukunft kommt zurück“
Auch bei der Finanzierung der Versorger zeigt sich ein Trend. „In den ersten sechs Monaten haben die Hälfte der Versorger ihre Anleihen als Green Bonds ausgegeben“, sagte Sean Kidney, CEO der Climate Bond Initiative.
In Spanish
Ultimora.news, L’economia green potrebbe portare mezzo milione di posti di lavoro entro il 2023
Secondo Sean Kidney, Chief Executive del gruppo, il raggiungimento dei 100 miliardi di dollari in green bond per la terza volta in un arco di tempo così ravvicinato rappresenta una buona novella, che però potrebbe essere oscurata dal possibile conseguimento del trilione di dollari d’investimenti ecocompatibili annuali entro il prossimo anno.
elBoletin, Las empresas tiran del mercado de bonos verdes en España a la espera del Tesoro
Si ese ritmo creciente de emisión puede mantenerse durante los próximos cinco años, el ‘stock’ mundial de bonos verdes ascendería a alrededor de 1,5 billones de dólares en 2024, de acuerdo con datos de la a ‘Climate Bonds Initiative’.
In French
Les Echos, L'offre des placements ESG reste encore trop faible, malgré l'intérêt des entreprises
(…) Le marché des obligations vertes, dites 'green bonds', représente 180 milliards de dollars à comparer aux 3.000 milliards du marché obligataire, selon le Climate Bonds Initiative (CBI) », affirme Etienne Oberthur, coordinateur des sujets ESG au sein de l’AFTE.
In Italian
We Wealth, Green bonds, quando agli investitori basta l’etichetta, Francesca Conti
Secondo lo studio della Climate Bonds Initiative oltre 2 investitori su 10 non escluderebbero di investire in un’obbligazione ‘verde’ anche se non fosse sicuro che finanziasse progetti sostenibili.
EUROPEAN GREEN BOND STANDARD & TAXONOMY (chosen coverage)
Financial Times, Brussels pushes to create the world’s first green gold standard
Financial Times, EU ‘urgently’ needs common ESG rules, says French watchdog
The Washington Post, How Investors Can (or Can’t) Spot ‘Greenwashing’, Jacqueline Poh and Emily Chasan
That’s why the European Union is working on a set of guidelines that would introduce a clear methodology and disclosure requirements for ESG analysis or rating providers, and comparable criteria for so-called green bonds.
The Parliament Magazine, Greening the economy
The EU is the first jurisdiction to legislate on green and sustainable finance. The taxonomy will define green and sustainable economic sectors and activities, and translate EU and international environmental, climate and energy standards into a language that investors and consumers can use everywhere.
Politics Home, What’s stopping us from using our pension pots to fight climate change?, Maria Busca
The European Union have already moved in this direction focussing on tackling climate change, working on an EU taxonomy that banks and funds would have to comply with to launch green products. The aim is to help investors identify environmentally friendly activities.
Bloomberg, After $30 trillion bonanza green finance is about to get a cop, Alexander Weber
Bloomberg, Europe’s ‘Taxonomy’ May Set Global Standards for Green: Q&A
Reuters, EU rules on responsible investments to kick in from 2021: document, Francesco Guarascio
Euractiv, EU strives to clarify ‘transition activities’ on path to zero-carbon goal, Frédéric Simon
Euractiv, Paris, Berlin divided over nuclear’s recognition as green energy, Cécile Barbière
New Europe, Europe needs common ESG standards to prevent greenwashing, Zoi Didili
Business Standard, EU rules on responsible investments expected to kick in from 2021
Insurance Journal, EU Rules for Responsible Investing to Be Set for Insurers, Asset Managers in 2021
Responsible Investor, EU Council told to ‘get serious’ about green taxonomy as political negotiations resume
The Straits Times, EU looking to regulate $41 trillion green finance market
The Jordan Times, An energy transition with a European touch, Javier Solana
In German
Welt, Goldader Green Finance wird nun stärker an die Leine genommen
Börsen-Zeitung, Von Buzzwords zu konkreten Produktstrategien
Börsen-Zeitung, Finanzsystem muss umweltfreundlicher werden
In Spanish
Diaro Responsable, Finanzas sostenibles y taxonomía verde, Iván Díez
Borsa Inside, Tassonomia UE e definizione fondi di investimento sostenibili
Focus Risparmio, Finanza sostenibile, la Tassonomia Ue non può attendere
In French
L’Agefi, La discorde persiste sur la taxonomie verte européenne
In Chinese
The Storm Media, 程淑芬觀點：責任投資與責任放貸—金融業的責任與機會
CERTIFIED BONDS
Fira
El Economista, FIRA emite segundo bono verde por 2,500 millones de pesos
“La emisión contó con la distinción de ser el primer bono verde en el mercado local que incluye la rama forestal. Asimismo, el bono cuenta nuevamente con la certificación de la Climate Bonds Iniciative (CBI) y de Sustainalytics, así como con el apoyo del Banco Interamericano de Desarrollo (BID)”.
La Razon, FIRA emite bono por 4.5 mmdp para agro
La emisión contó con la distinción de ser el primer bono verde en el mercado local que incluye la rama forestal. Cuenta con la certificación de la Climate Bonds Iniciative (CBI) y del Banco Interamericano de Desarrollo.
Dinero, Negocios y Finanzas, FIRA obtiene 4,500 mdp en BIVA, Miguel Ramirez
La emisión contó con la distinción de ser el primer bono verde en el mercado local que incluye la rama forestal. Asimismo, el bono cuenta nuevamente con la certificación de la Climate Bonds Iniciative (CBI) y de Sustainalytics, así como con el apoyo del Banco Interamericano de Desarrollo (BID).
Japan Railway Construction, Transport and Technology Agency (JRTT)
All About News, 鉄道・運輸機構（JRTT）が発行する「サステナビリティボンド」への投資
JRTTは、この資金調達の透明性を確保するために国際的な第三者評価機関であるDNV GL※1から環境改善効果や社会貢献の適合検証に加えて、アジアで初めて厳格な国際基準を設けるCBI※2からのプログラム認証（一度の認証で継続的な債券発行が可能となる制度）を取得しております。
