Climate Bonds Blog

Posted: May 22, 2011 by Sean Kidney

Following in the footsteps of other multi-national development banks like the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, the IFC have decided to try Japanese retail investors. They've issued $135 million of green bonds, in four tranches, with the last three tranches out 17 May.

Will the appetite of Japanese retail investors for green bonds ever be sated?

Posted: May 22, 2011 by Sean Kidney

The European Bank for Reconstruction and Development (EBRD) has launched its third environmental sustainability bond, bringing its total issuance since December 2010 to €29 million ($41.4 million). As with previous bonds, they're aimed at the Japanese retail market.

The bond proceeds are “specifically earmarked to support a portfolio of ‘green’ projects".  Apparently a fourth green bond will be launched in the "near future".

See the full story at Environmental Finance.

Posted: Apr 21, 2011 by Sean Kidney

Climate Bonds Initiative Chair Sean Kidney announced in London today that the Carbon Disclosure Project is joining the Climate Bond Standards Board, supervising a program to provide investors and governments with an easy way to assess the integrity of environmental claims for green bonds.

Mr Kidney said: “According to the International Energy Agency we need at least a trillion dollars a year to be flowing into low-carbon industries if we’re to avert catastrophic climate change. That money will come largely from bond markets. We need to ensure it’s invested properly.”

Posted: Apr 21, 2011 by Sean Kidney

We have four new and distinguished Climate Bonds Advisory Panel members:

- Pedro Moura Costa, E2 environmental finance, co-founder EcoSecurities- Stuart Clenaghan, Eco System Services Limited and former Lehman/UBS fixed income manager- Jonathan Maxwell, founding partner, Sustainable Development Corporation- David Wood, Institute for Responsible Investment, Harvard University

Posted: Apr 18, 2011 by Sean Kidney

According to Pensions & Investment magazine: "Money managers, institutional investors and others are combining efforts to drive the nascent green bonds market forward, and the fruits of their labor are becoming apparent."

It's an all-cast story, with quotes from CalSTRS, SSgA, UKSIF, SEB, IIGCC, AP3, Nikko, Calvert (if you know all the acronyms you qualify as a green bond groupie). The story also mentions the Climate Bonds Standards.

http://www.pionline.com/apps/pbcs.dll/article?AID=/20110418/PRINTSUB/304189979/1031/PIIssueAlert01

Posted: Apr 4, 2011 by Sean Kidney
One of globalisation's cheerleader - Tom Friedman - welcomes Paul Gilding's new book on climate change, "The Great Disruption"!  What gives?

Paul argues that the world will wake up to the climate change crisis we face at some point in the near future. And when this happens, he thinks we will rapidly switch into a "war footing" type of response. This profoundly game-changing point will mean we will be able to do the things we've needed to do and on a massive scale. What does that mean for investors?

Posted: Mar 17, 2011 by Sean Kidney

Eversheds law partner Michele Thomas, speaking at this week's Environmental Bonds Conference in London, said that the banks her firm has been working with on renewable energy transactions are preparing to securitise those loans and sell their exposure via green bond structures. Eversheds is one of the top ten law firms in the UK.

Environmental Finance reports that she said “All the work we’re doing in certain technologies – for example solar – is done with a view to securitisation,” she said. “The banks realise they can’t continue to fund on a traditional project finance basis – they need an exit.”

Posted: Mar 17, 2011 by Sean Kidney

The draft Climate Bonds Standard has now been release for public comment - you have 30 days! Please do review and comment. Media release is below:

 

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Posted: Mar 16, 2011 by Sean Kidney

A recent report prepared for Barclays by Accenture has placed the need for the standardisation of green bonds front and centre for efforts to finance a low carbon economy.

The report estimated that up to €2.9 trillion of procurement and development capital will be needed for the roll-out of low carbon technologies across the EU25 by 2020. They estimate that 'green' bonds in the form of asset-back securities could account for €1.4 trillion of this total. The figure includes the sum of likely project finance debt, asset finance term loans, asset lease financing, and primary bonds that could be securitised into green asset-backed securities.

Posted: Mar 10, 2011 by Sean Kidney

Environmentally-themed Uridashi bonds (non-JPY denominated bonds sold directly to Japanese individual investors) have been popular in Japan for some time, making it by far the biggest market for such bonds. We've now seen issues by everyone from the World Bank and the ADB to Norway's Kommunalbanken, who have just issued USD180 million worth. Nikko AM has two retail funds that predominantly invest in World Bank Green Bonds collectively now at half a billion US dollars.