TOP THREE READS
Responsible Investor, A call to fellow green bond investors in these difficult times: When others are fearful, be greedy, Ulf Erlandsson
Erlandsson puts forward several arguments as to why investors must stick to their green commitments in the “maelstrom of market volatility". He starts with an emotional one saying that periods of market volatility are the right times to prove investors’ long-term belief in sustainable assets. Later he moves on to strong, analytical line of reasoning and brings in some specific recommendations.
In the long-term perspective, if we can show that green bond markets are holding up better than ‘fossil’ markets through this, we will have a powerful narrative. This is also a quantitative finance story. If the data, post-crisis, will show that green assets had less volatility than brown assets, this
will directly link to lower funding costs for green issuers in the future.
Reuters, As Europe fights coronavirus and climate, is 'green stimulus' the way?, Dhara Ranasinghe, Yoruk Bahceli
Green stimulus, in the form of intensification of sovereign green bonds issuance, is viewed by many as the answer to financial crisis brought about by the Covid-19 outbreak. Authors claim that “there might be no better time to go green”.
Coronavirus has taken some focus away from environmental issues but pressure is now mounting to design spending around climate change. On Tuesday, UK government adviser Chris Stark urged governments to “look to green stimulus”.
Forbes, How Coronavirus Makes The Case For Renewable Energy, David Vetter
It turns out renewable energy and coronavirus are not mutually separable. Article that resonated in many international media pieces in March.
“There has to be recognition that the increased volatility in the oil markets will stand in stark contrast to what may become the great virtue of renewable energy, which has nothing to do with its greenness, but more about the stability of cash flows from underlying assets,” Donovan said. “The relative stability of renewable energy that’s fully contracted, that already has power purchase agreements ... should make it immune from deterioration.”
MARKET NEWS & ANALYSIS
Bloomberg Green, UBS Says Investors Should Prefer Green Bonds Over Regular Debt, David Caleb Mutua
UBS Global Wealth’s head of credit says that sustainable investments “hold up more steadily” in midst of volatility and doesn’t think that green bond issuance will be significantly hit by current market downturn.
A company’s sustainable bonds tend to have tighter bid-ask spreads compared to its non-green notes, and that’s still evident despite the current market turmoil, said Wacker. While risk premiums have blown out for both types of securities, the widening hasn’t been as pronounced for green debt.
Investment & Pensions Europe, On the record: Green bonds, Carlo Svaluto Moreolo
Representatives of two Nordic pension funds - Finish Ilmarinen and Norewgian KLP - shared details of their investment strategies with I&PE. Both do not have a specific allocation or mandate for green bonds. Instead, their approach boils down to: “everything must be green”.
“Actually, we do not have a green portfolio, in the sense that we do not separate green or sustainable assets from non-green ones. We think we have an extensive responsible-investment policy, with guidelines for every part of our portfolio.”
Global Capital, Middle East sovereigns must follow Egypt’s green example, Mariam Meskim
Author is surprised that it was Egypt and not one of the Gulf Cooperation Council (GCC) sovereigns that has announced issuance of Middle East’s first sovereign green bond.
Last week, the Arab Republic of Egypt announced it would begin issuing green bonds (…). It surprised some in the market, who had expected Morocco or Tunisia to be first. Either way, there was plenty of disappointment directed at the Gulf states — (…)— that it wasn't one of them taking Egypt’s step.
International Financing Law Review, UK corporates interested in EU taxonomy, regardless of Brexit, Jimmie Franklin
It is predicted that UK corporates will remain aligned with the new EU taxonomy after the end of transition out of the EU.
Market participants are positive that the UK will remain aligned with the EU’s sustainable finance taxonomy following the end of the Brexit transition period in December 2020 (…).
Modern Diplomacy, Financing the Global Energy Transformation: Green Bonds
Recent International Renewable Energy Agency’s brief called green bonds “an innovative instrument that can help channel substantial global capital into renewable energy and other green assets”.
By bridging the gap between providers of capital and green assets, green bonds can help governments raise finance for projects to meet climate targets and are enabling investors to achieve sustainability objectives. Like conventional bonds, green bonds allow the bond issuer to raise funds for specific projects or ongoing business.
COVERAGE IN FOREIGN LANGUAGES
In Italian
Corriere della Sera, La finanza verde ha raccolto 581 miliardi di euro. Dove vanno a finire?, Milena Gabanelli, Fabrizio Massaro
Green bond market story nicely digested by Italian daily. Key numbers, key facts, key issuances and overview of key market challenges.
(…) Gode di ottima reputazione per esempio la ong Climate Bonds Initiative (Cbi), che valuta le aziende secondo criteri molto stringenti. Nel 2017 il colosso petrolifero Repsol, che aveva avuto il bollino «green» da Vigeo Eiris, è stato valutato da Cbi non degno di quella medaglia. Aveva promesso la riduzione di 1,2 milioni di tonnellate di CO2 all’anno, ma poi nei fatti non ha mai modificato il modello di business.
Wall Street Italia, Obbligazioni: crescita nel segno dei green bond, Fabrizio Guidoni
S&P and Climate Bonds Initiative 2020 market predictions in Wall Street Italia.
Tenuto conto che, come visto, il dato globale sarà intorno ai 400 miliardi di dollari, ecco che l’emissione nel mercato delle obbligazioni con etichetta green potrebbe crescere vicino ai 300 miliardi di dollari nel 2020, dopo aver raggiunto un record di 238 miliardi nel 2019 secondo la Climate Bonds Initiative.
In Spanish
EPBR, Mercado brasileiro de green bonds volta a crescer e movimenta US$ 1,2 bi em 2019, Gabriel Chiappini
The Brazilian green bonds market, still in its infancy, has grown 6 fold year to year (2018/2019). Author takes a dive into growth scenarios for the country.
O mercado brasileiro de títulos verdes movimentou US$ 1,2 bilhão em 2019, quase seis vezes mais que o registrado no ano anterior (US$ 209 milhões), de acordo com monitoramento da Climate Bonds Initiative (CBI). Foi o segundo melhor ano da série histórica, iniciada em 2015, mas há uma demanda reprimida por projetos brasileiros no exterior.
EPBR, Faltam projetos no Brasil para captar recursos com green bonds
Shortage of projects that can qualify for green financing is the issue that Brazil needs to address.
“Temos uma escassez enorme de projetos. Tivemos várias operações via debênture para o setor de energia solar e eólica. Porém, há vários setores que ainda podemos explorar, como os de bioenergia, água e saneamento, e transportes”, explica Thatyanne Gasparotto, diretora para a América Latina da CBI.
El Pais, América Latina se sube a la ola de los bonos verdes, Ignacio Fariza
LatAm green bond landscape changes rapidly with growing interest of private sector players and sovereigns.
“Considerando las emisiones cerradas después del primer semestre, 2019 ya es un año récord para América Latina”, apuntan los técnicos de la Climate Bonds Initiative, uno de los tres entes que determinan la eligibilidad de un pasivo para ser considerado “verde”.
In German
finanzen.net, Warum die EU-Regulierung den Green Bond-Markt stärkt
Author cites CBI’s data and calls development of Climate Bond Standard and EU taxonomy “evolutionary steps” towards market uniformity.
Diese Grundlagen hat die internationale Organisation Climate Bonds Initiative (CBI) aufgegriffen und den Climate Bonds Standard (CBS) entwickelt, der konsistent mit dem Pariser Klimaschutzabkommen ist. Neben der Rahmensetzung für Management und Berichterstattung handelt es sich bei den CBS um ein internationales Zertifizierungsschema.
Börsen-Zeitung, Finanzplatz Frankfurt wird nachhaltiger, Gertrud Traud
Author indicates a competition between European financial centres for a position of green finance centre and points to a growing role of Frankfurt.
Dollar 2007 folgt dieses Segment einem kräftigen Aufwärtstrend, wie Daten der internationalen Organisation Climate Bonds Initiative (CBI) belegen. 2019 betrug das jährliche Neuemissionsvolumen weltweit fast 258 Mrd. Dollar - ein neuer Rekord.
In French
Les Echos Investir, Les green bonds à la rescousse?, Delphine Tillaux
Author wonders if green bonds alone will suffice to “rescue” the world.
Parmi les instruments financiers les plus populaires : le green bond, ou obligation verte. Ce marché a connu un essor spectaculaire depuis sa création en 2012, avec une croissance moyenne de 70 % par an, selon Climate Bonds Initiative.
In Polish
onOZE.pl, W jaki sposób koronawirus potwierdza słuszność inwestycji w energię odnawialną
Author invokes Forbes article “How Coronavirus Makes The Case For Renewable Energy” quoted hereinbefore.
Tymczasem emisja zielonych obligacji wzrosła w ubiegłym roku o 50%, osiągając rekordową kwotę 255 miliardów dolarów, zgodnie z inicjatywą Climate Bonds Initiative.
EU TAXONOMY final report
Financial Times Moray Money, EU’s green plan takes shape as trouble emerges for carbon tax, Billy Nauman, Patrick Temple-West and Gillian Tett
On Monday, the commission unveiled its long-awaited taxonomy. The final document runs to about 700 pages and aims to quash greenwashing and encourage eco-friendly financial investments. 
Investment & Pensions Europe, Final EU sustainability taxonomy report out, with user guidance, Susana Rust
Sean Kidney, CEO of Climate Bonds and a member of the TEG, said: “The EU taxonomy opens up huge opportunities for institutional investors to support low carbon and green growth, transition activities and decarbonisation.”
Reuters, EU to consider proposed two-tier approach to 'green' rules
In its final recommendations, the TEG said creating a second tier of assessment would incentivise investments that help reduce the impact of activities causing environmental harm.
Expert Investor, EU Green Bond Standard could hit the starting line in 2021, Elena Johansson
Highlighting the importance of the standard, Sean Kidney, Teg member and chief executive and co-founder of the Climate Bonds Initiative, told Expert Investor that it will become the “governing guidebook for EU issuance”.
Global Capital, EU Taxonomy and Green Bond Standard: sneak peek, Jean Comte, Jon Hay
Green bond specialists will be interested particularly in the Green Bond Standard, which will be put out for consultation for three months from March and will form a centrepiece of the new Commission's sustainable finance policy.
Global Capital, EU green standard could stop transition bonds, Jon Hay
Since the invention of green bonds 13 years ago, market participants have circled round the problem of what is green. There are many answers, such as the Climate Bonds Initiative's standards, but none have any official authority. That is about to change. The EU's Green Bond Standard is likely to become law before the year is out, and it could alter the market in several ways.
Responsible Investor, EU taxonomy advisors call for expansion from green to 'brown' in final report, Sophie Robinson-Tillett
Responsible Investor, 50 investors work on EU taxonomy adoption as corporate disclosure already shows signs of divergence, Sophie Robinson-Tillett
Environmental Finance, Investors and verifiers welcome EU Green Bond Standard
Global Capital, EU Taxonomy a mix of soft and strong, clear and vague, Jon Hay
Business Green, Can the EU's Taxonomy end greenwashing in the financial sector?, Michael Holder
EU Reporter, Commission welcomes expert group reports on EU taxonomy and the #EUGreenBondStandard
EU Observer, Commission publishes EU green investment 'rules
ENDS Europe, EU experts recommend nuclear, gas, coal classed as unsustainable investments
Bloomberg Green, EU Urged to Draw List of Dirty Activities in Green-Finance Drive
Funds Europe, Will the EU sustainable finance taxonomy make a difference?
The Asset, EU green bond label to be available to issuers from all over the world, Michael Marray
In Italian
Il Sole 24 Ore, Gli investimenti verdi e la giungla della burocrazia europea
Gli Stati membri dell'Unione europea e il Parlamento europeo hanno finalmente adottato la c.d. “tassonomia verde” per classificare gli investimenti sostenibili, dopo aver raggiunto un laborioso accordo a gennaio 2020 su un lungo elenco di attività economiche.
ETica News, Oggi il final report sulla Tassonomia
ETica News, Green bond Ue? Solo se Taxonomy-aligned
Quotidiano Energia, Finanza sostenibile, arrivano tassonomia e green bond
Ambiente & Energia, Ue, nucleare e gas con alte emissioni non sono investimenti 'verdi'
In French
L’Agefi, Vers une exclusion du nucléaire de la taxonomie verte, Mathieu Solal
Un rapport d’experts de la Commission propose des critères techniques pour 70 activités représentant 93% des émissions de CO2 européennes, sans jamais inclure le nucléaire.
La Libre, Le nucléaire pas recommandé à ce stade pour les investissements verts
Novethic, L’Europe établit une liste de ce qui est vert… mais continue à buter sur le nucléaire
RSE Data News, Taxonomie verte européenne : que retenir du rapport final, Thibault Gygès
Next Finance, Taxonomie Verte : Publication du rapport final du groupe d’experts techniques
In German
Tagesspiegel Background, Grüne Liste für Nachhaltige Finanzen, Joachim Müller-Soares
Die von der EU-Kommission eingesetzte Expertengruppe für Sustainable Finance hat ihre Empfehlungen zur Taxonomie vorgelegt. Der Report ist eine große Hilfe für die Gaswirtschaft.
In Spanish
Funds People, La Comisión Europea emite el informe sobre la taxonomía y la guía del estándar de bonos verdes
El pasado 9 de marzo de 2020, justo el mismo día en que las bolsas se desplomaban la Comisión Europea publicó su informe final sobre la taxonomía para las inversiones y proyectos sostenibles en la UE como paso previo a un debate que deberán mantener los miembros de la comisión con las partes interesadas.
In Korean
Energy Transition Korea, 유럽연합, 녹색금융 분류체계에서 원전 제외 최종 결정
Energy Transition Korea, [보도자료] 유럽연합, 지속가능한 금융에서 원자력 제외 '심각한 불피해(Do no Significant harm)' 요건 충족 못해
In Japanese
RIEF, 国際資本市場協会（ICMA）のサステナビリティ部門責任者、EU Taxonomyを将来のサステナビリティ・リンク・ボンド等の基準化に活用する考え示す。
In Polish
Alebank.pl, Taksonomia zrównoważonego finansowania i standard zielonych obligacji, Bartosz Bacia
CBI NEWS
EPBR, Climate Bonds Initiative analisa emissão de títulos verdes para ferrovia ligando Mato Grosso ao Pará, Gabriel Chiappini
Climate Bonds Initiative is working with Brasilian Ministry of Infrastructure on evaluating portfolio of projects and identifying assets that could be labelled green.
“Estamos analisando a carteira de concessões de infraestrutura do governo federal. Começando por ferrovias. Vários desses ativos poderiam ser rotulados como verde para atração de investimentos”, explicou à epbr, Thatyanne Gasparotto, diretora da CBI para América Latina.
Money Times, Mercado de dívida de títulos verdes terá novos elegíveis do agronegócio, Giovanni Lorenzon
Public consultation for new agriculture criteria under the Climate Bonds Standard closed on 31st March 2020.
Agora, a certificadora está recolhendo sugestões em consultas públicas. Para a head da América Latina da CBI, a partir do segundo semestre o espectro de opções de CRAs e debêntures verdes, entre outros, deverá ser maior, a partir de elegibilidade de novos ativos e projetos.
ProShare, FMDQ, FC4S Lagos, UNEP, Others Kick-Off the Nigerian Green Tagging Project
Climate Bonds Initiative will be providing technical assistance to enable banks participating in the project “identify, tag, track the performance of green assets and migrate them to the capital markets”.
Lending her voice to the introduction of this initiative, Ms. Justine Leigh-Bell, Deputy CEO/Director, Market Development, Climate Bonds Initiative, UK, added that, Nigeria continues to take strides in developing its green finance market, setting the path for other African nations to follow.
Yahoo Finance, Ping An of China Asset Management (Hong Kong) Becomes the First Asian Institutional Investor to Partner with CBI
New joiner to the Climate Bonds Initiative partners programme.
PAAMC HK, the overseas asset management arm of Ping An Insurance (Group) Company of China, o(…), is the first Chinese asset manager and the first institutional investor from Asia to become Climate Bonds Partner.
Solar Magazine, Climate Bonds Initiative geeft TRIO Investment groen licht voor uitgifte Green Bond, Marco de Jonge Baas
Climate Bond Standard Board approved the certification of green bond planned by the Dutch renewable energy investment company.
TRIO Investment behaalt hiermee als eerste particulier bedrijf in Nederland een gecertificeerde groene klimaatobligatie voor zonne-energie. De groene obligaties zijn gecertificeerd volgens de Solar Criteria van de Climate Bonds Standard.
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Brasilian electricity generation and distribution company Eletrobas will be issuing a green bond certified under the Climate Bond Standard. Coverage below:
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PV Magazine, Eletrobras podrá emitir bonos verdes, Pilar Sánchez Molina
La eléctrica estatal brasileña Eletrobras ha recibido la certificación de la Iniciativa de Bonos Climáticos (CBI) – una organización internacional sin fines de lucro que evalúa proyectos sostenibles – y puede emitir bonos verdes para financiar proyectos de generación de energía solar y eólica.
Energías renovables, La eléctrica estatal Eletrobras emitirá bonos verdes para financiar proyectos renovables
La empresa estatal de generación y distribución de electricidad Eletrobas ha anunciado que recibió la certificación de Climate Bonds Initiative (CBI), una organización internacional sin fines de lucro que evalúa proyectos sostenibles, que le permite emitir bonos verdes para financiar proyectos de generación de energía fotovoltaica y eólica.
Valor Investe, ‘Erros contábeis’ derrubam comando da CVC e lucro da B3 cresce 30%
A Eletrobras poderá a partir de agora emitir “títulos verdes” para financiar projetos de geração de energia solar e eólica. A companhia de energia elétrica recebeu uma certificação da Climate Bonds Initiative (CBI), organização internacional sem fins lucrativos que certifica projetos sustentáveis.
Canal Energia, Eletrobras é certificada para emissão de green bonds
A Eletrobras recebeu certificação da Climate Bonds Initiative, uma organização internacional sem fins lucrativos que avalia projetos sustentáveis.
Portal Solar, Eletrobras é certificada para emissão de títulos verdes
A empresa recebeu a certificação da Climate Bonds Initiative, uma organização internacional sem fins lucrativos que avalia projetos sustentáveis. A certificação teve apoio do Banco Interamericano de Desenvolvimento.
