Climate Bonds Blog

Posted: Oct 19, 2010 by Sean Kidney

UK 'green' energy company Ecotricity announced yesterday that it's issuing ‘EcoBonds’ to fund an expansion of its renewable energy generation capacity. The mix of assets to be developed includes wind, solar and renewable gas. Ecotricity is aiming to raise a modest £10 million with the bonds.

The fixed rate EcoBonds have a 4-year term and pay 7% - or 7.5% for Ecotricity customers. The bonds are aimed at ethical investment market, including, clearly, Ecotricity customers.

Posted: Oct 6, 2010 by Sean Kidney

Sean Kidney, chair of the Climate Bonds Initiative, will be speaking about Climate Bonds at three events in the coming month.

The first is an "Environmental Bonds Webinar" on 15 October 2010. This will be an online presentation. Also presenting will be fellow Climate Bonds associates Christopher Flensborg of SEB Bank and Simon Petley or Enviromarket.

Posted: Oct 1, 2010 by Sean Kidney

The Asian Development Bank (ADB) has sold US$232.2 million worth of Clean Energy Bonds in the Japanese retail market to support its renewable energy and energy efficiency projects in Asia and the Pacific. Lead manager was HSBC.

This is an escalation in the issuance of environment-themed bonds. The largest issuer of environment-themed bonds remains the World Bank, with $1.3 billion, although the ADB has said that it expects to issue more climate and green-themed bonds.

Posted: Oct 1, 2010 by Sean Kidney

The new edition of Carbon Management journal, published today, includes an Editorial by Prof. John Mathews and Sean Kidney on "Climate bonds: mobilizing private financing for carbon management".

Posted: Sep 22, 2010 by Sean Kidney

Responsible Investor journal reported last week that Alain Dromer, the new chairman of the the Association of British Insurers Investment Committee, had called for the re-activation of the securitisation markets to help develop environmental investment opportunities. Absolutely right.

“We want to work with the government to develop the right kind of environmental investment opportunities” he said. You can read the full speech here: Alain Dromer ABI speech. Note page 4 in particular.

Posted: Sep 9, 2010 by Sean Kidney

The PACE (Property Assessed Clean Energy) program, strongly pushed by the US Department of Energy as the ideal financing model for residential solar panels and energy efficiency, is in trouble. It may have implications for the UK's PAYS scheme. The bonds are candidates to be called climate bonds.

PACE involves local authorities raising funds with special-purpose Municipal bonds, guaranteed by the federal government, to on-lend to households. Capital is provided to fund projects on demand. Climate Bonds Advisory Panel member Christoph Harwood calls this “buying a bond in tiny pieces”.

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.