This is the proposal prepared by Bank of America Merrill Lynch and Citigroup. It was first published in EuroWeek's recent Special Report on Sustainable and Responsible Capital Markets.
Framework for Green Bonds
Climate Bonds Blog
Posted: Nov 1, 2013
FYI: full text of Green Bonds Framework - steering c'ttee now set up w. BoAML, Citi, JPM, MS +others in process of joining
Posted: Nov 1, 2013
Earlier this month CitiBank and Bank of America Merrill Lynch (BoAML) launched, via a special EuroWeek report on 'sustainable' capital markets, a "Framework for Green Bonds". This is potentially a big development.
Citi+BoAML promote new Green Bonds Framework; JP Morgan+MS join up; defines a green bond as being about underlying assets not green rating of the company
Posted: Oct 30, 2013
Ontario Premier, Kathleen Wynne is right now speaking at the Willowbrook (metro rail) Maintenance Facility in Toronto, announcing that Ontario will be the first provincial government in Canada to issue green bonds. The bonds will be to finance “environmentally-friendly” infrastructure projects across Ontario - transit projects in the first instance, hence the metro rail location.
She is also saying that Ontario’s green bonds would “meet international certification and disclosure standards”.
Ontario's Premier announces she is pushing through legislation to allow the Province to issue climate bonds linked to their Metro rail assets
Posted: Oct 20, 2013
We’re holding the final of our Bonds and Climate Change 2013 report webinars tomorrow @ 10am New York, 3pm London, 4pm Frankfurt, 10pm Beijing. If you've missed out so far, quickly RSVP to bridget.boulle@climatebonds.net. She will send you the log-in details.
Join us: final 2013 Bonds & Climate Change Webinar - tomorrow - Mon 21 Oct @3pm London time
Posted: Oct 16, 2013
This China banking regulator stuff is getting exciting.
Under China's Green Credit Banking Guidelines (see last night's blog) banks are meant to a make sure that environmental assessments have been done for all company lending and that projects financed by loans remain in compliance with environmental laws. According to the Annual Report of Green Credit in China, only a small percentage of banks are so far reporting on this and the various other related regulator guidelines around green finance.
Regulator update: China's excellent green credit guidelines are ... mandatory! A whole new set of worry lines for bank compliance staff :)
Posted: Oct 16, 2013
7 Easy Steps to Move Pension Funds from Short-term to Sustainable, +7 Steps for Pension Fund Staff
Posted: Oct 15, 2013
Spanish waste management company Befesa Medio Ambiente SA is the global leader in recycling steel dust into zinc and also the global leader in aluminium recycling. We count corporate bonds from companies like Befesa as part of our bonds and climate change universe when they come from companies 100% devoted to "circular economy" activities that lead to lower lifecycle energy and GHG usage (e.g. recycling aluminium uses a LOT less energy than making it).
Spanish waste mngt co. issues €150m 5yr PIK note @4.5%. Yes, only 4.5% for a Spanish junk (climate) bond! Does that mean the ECB strategy is working?
Posted: Oct 15, 2013
I've spent all day in a Beijing roundtable with a few colleagues, talking with representatives of the State Council's Development Research Centre and various finance sector regulators. It's all about green finance and green bonds, organised by Simon Zadek at IISD and following the government's announcement that it would develop a corporate green bond market.
China's finance sector regulators are pushing green
Posted: Oct 11, 2013
The African Development Bank (AfDB) has just issued the 3 year, USD500 million green bond they flagged over Summer; the deal closed yesterday at 14:30 London time. The bond 10% over-subscribed by the close of the half-day sales window. Coupon was 0.75% - yes, interest rates really are that low for AAA bonds!
AfDB's long-awaited AAA $500m inaugural green bond is sold out
Posted: Oct 10, 2013
An agenda for change, by Nick Silver, Managing Director, Climate Bonds Initiative
To avoid dangerous climate change will require the equivalent of another industrial revolution. This can only be achieved if finance into the green economy is increased by an order of magnitude. This may be possible as many low carbon technologies are competitive with fossil fuel if the cost of finance is low enough
Below are 10 tweaks based on the premise that if financing the green economy becomes attractive for actors within the financial system, in particular banks, investment banks and the shadow banking system, then these actors will aggressively promote investment into this sector.
10 tweaks to transform the green economy