Climate Bonds Blog

Posted: Sep 8, 2010 by Sean Kidney

A senior provincial official recently told China Daily that Chinese financing for clean energy may reach 8 trillion yuan, and China may issue yuan-denominated "green bonds" to meet financing demands.

Gao Cailin, director general of the Office of Financial Affairs of Jilin Province, said that "The soaring demand would create huge space for development of 'green finance'."

"The soaring demand would create huge space for development of 'green finance'," he said.

Green finance refers to credit aimed to support low-carbon green sectors, such as new energy.

Posted: Sep 8, 2010 by Sean Kidney

The UK Government yesterday held an investor and financier forum to launch it's new Capital Markets Climate Initiative to unlock new investment in low-carbon technologies - as well as make London a global hub for green finance. There was a special emphasis on financing climate change mitigation activities in developing nations.


Posted: Sep 8, 2010 by Sean Kidney

Environment Business Australia (EBA) has put forward six key climate change recommendations to the new Australian Government, including climate bonds and a Green Investment Bank. EBA's Fiona Wain was first briefed on the Climate Bonds Initiative at the Copenhagen Conference last December.

Posted: Jul 19, 2010 by Sean Kidney

In a chapter for a new IFR Intelligence Report on Sustainable Banking, Sean Kidney, Christopher Flensborg, Alex Veys and Bryn Jones argue that the nascent environmental theme bond market heralds the arrival of a major class of theme bonds (climate bonds), as institutional investors and governments devote capital to a product which both fulfils risk/reward expectations and signals their de-carbonisation efforts to their member and voter stakeholders.

Posted: Jul 13, 2010 by Sean Kidney

True! See for yourself. OK, it's only $1 mil and backed by Lafarge and it's a bit publicity stunt; but it's an entertaining one.

The issuer is Novacem, a spin-out from Imperial College London that has developed a "carbon negative cement" that they claim will offer cost and performance parity with Portland cement.

(Thanks to Christoph Harwood for spotting it.)

Posted: Jul 2, 2010 by Sean Kidney

A discussion paper released today by the Climate Bonds Initiative reviews experiences with State infrastructure banks in Europe and the US. The paper says that there are a wide range of financial engineering options that a Green Infrastructure Bank could use to to leverage public funds to support an increased flow of private investment into clean energy and climate change mitigation projects.

Posted: Jun 29, 2010 by Sean Kidney

Commissioned by the UK Conservative Party, the report outlines the need and proposed risk mitigation role of a new Green Investment Bank, and how it would raise and invest funds. It includes an explanation of how Green Bonds could be used to fund the Bank and its activities.

The new UK Government, in its 2010 Budget, committed to setting up a Green Investment Bank in 2011.

Posted: Jun 23, 2010 by Sean Kidney

Speaking in Brussels after a European leaders summit, Greek Prime Minister George Papandreou said that the leaders had discussed Europe putting forward new ideas to this week's G20 meeting in Toronto for, among other things, Green Bonds to fund new (presumably energy) infrastructure. No further details are yet available, but I for one am very keen to hear more ...

Posted: Jun 20, 2010 by Sean Kidney

A report in PointCarbon this week suggests that the World Bank is considering a new issue of "carbon bonds", after a two-year pause in issuance.

The story quotes World Bank head of derivatives and structured finance, Ivan Zelenko, as saying “We are in talks with a number of countries and banks about issuing new carbon bonds” .

Posted: Jun 17, 2010 by Sean Kidney

The Climate Bonds Initiative called today for the "greening" of the European Investment Bank (EIB). The call was in response to the EIB's push this week to become the main route for EU climate cash to the developing world.

Speaking in London's Canary Wharf, Climate Bonds Initiative Chair Sean Kidney said: "We support the bank becoming a conduit for European Union climate financing; climate investment banks will be a key part the financing of a rapid transition to a low-carbon economy".