Both policymakers and climate-friendly investors want assurance that green investments are genuinely green.
Internationally, the majority of Green Bond issuers use independent review to increase investor confidence in the credentials of projects funded by Green Bonds. The first Green Bond with an independent verification was the World Bank’s inaugural issue in 2008.
Independent reviews are typically provided by organisations with a strong environmental knowledge base — for example, CDM or ETS verifier organisations in China. They will look at:
- The green credibility of the proposed Green Bond investment categories.
- The processes established for tracking funds and for reporting.
Reviewers can also help identify green assets.
The Climate Bond Standards Board has a simple certification and verification process in place for potential issuers.
Using accepted standards when preparing a Green Bond for issuance reduces the cost of independent review of the green credentials and improves tradeability of Green Bonds.
For green RMB issuance in the international markets, Climate Bonds approved verifiers can be used. These include Bureau Veritas, DNV GL, EY and KPMG. See all approved verifiers here.