Climate Bonds Blog

Posted: Feb 4, 2011 by Sean Kidney

Ireland has set out plans to create a green version of its job-spawning International Financial Services Centre (IFSC), and hopes that it could create 7,000 jobs over the next five years.

A lot of the initiatives are aimed at the carbon markets and green equity funds, but Paul Harris, head of natural resources risk management at Bank of Ireland Global Markets, and a member of the Green International Financial Services Centre (IFSC) Working Group, has one eye on future environmental bonds markets.

Posted: Jan 13, 2011 by Sean Kidney

CBI network member Ben Caldecott has published a piece on green bonds in the British Guardian newspaper (http://www.guardian.co.uk/environment/cif-green/2011/jan/11/what-are-gre...).

Posted: Jan 6, 2011 by Sean Kidney

Environmental Finance has just published an article. Responsible Investor briefly reports on the project. And Verdantix list Climate Bonds as one of their Ten Predictions for Sustainable Business in 2011.

From the Verdantix report: "Climate bonds will spur financial innovation for sustainability. Broader marketing of climate bonds – debt finance for climate change mitigation and adaptation projects –will increase financing options available for low carbon infrastructure." etc.

Posted: Dec 24, 2010 by Sean Kidney

The Climate Bonds Initiative has now secured funding for a project to develop an international standards and certification scheme for Climate Bonds.

One of the issues the Climate Bonds Initiative has canvassed in the past has been the need for standards around the labeling of "green" debt.

The aim of the certification project is to develop a means to give assurance for investors and NGOs about whether funds are being invested in credible manner. This will support liquidity, so that investors can buy and sell climate bonds knowing that if they stick to certified bonds they can be assured different bonds will have the same level of environmentally credibility.

Posted: Dec 23, 2010 by Sean Kidney

Responsible-Investor.com reported this week that Danone, the French dairy products and bottled water giant, has been looking at the idea of issuing corporate bonds that would have an increased payout if they didn't meet environment, social and governance targets.

Would investors be interested if this approach were used for climate bonds, with penalty rates triggered if bonds don't live up to their environmental promises?

Posted: Dec 15, 2010 by Sean Kidney

1. The Indian government is planning to use the proceeds from their new coal tax to help set up a green bank to fund renewable energy projects. Now that's a good idea for countries like the US, Australia and Brazil!

2. New article: We can learn from Japanese state banks how to use Climate Bonds to fund the transition to a low-carbon economy.

Posted: Dec 12, 2010 by Sean Kidney

Bryan Martel is managing director of California-based Environmental Capital Group. He serves as the advisor to the CalPERS California clean energy and technology fund, and other West Coast investors, on the environmental performance of private equity investments. He is one of the drivers behind the P8 and serves on its Secretariat. Bryan will also be joining the working party for the Climate Bonds International Standards and Certification project.

Posted: Dec 11, 2010 by Sean Kidney

As the Cancun sun sets .... Russia helps sink Kyoto / UK Climate Change Committee a hit / Climate Finance Fund gets up / China’s low carbon Five Year Plan ... see below.

1. The UK Climate Change Committee (a statutory body under their Climate Action Bill) was popular amongst Cancun NGOs this week with its call for 60% emission cuts in the UK by 2030 and 50% by 2025. One NGO newsheet called it a “ray of sunshine”.

Posted: Dec 8, 2010 by Sean Kidney

The European Bank for Reconstruction and Development has released its first green bond, with funds raised being used to finance environmental sustainability projects. This follows similar bonds issuance by the World Bank, the International Finance Corporation, the European Investment Bank and the Asian Development Bank.