Green Bond Principles
The Green Bonds Principles were launched by a consortium of investment banks in January 2014. They are hosted by the International Capital Markets Association (ICMA). There are now some 124 members and observer members (including the Climate Bonds Initiative).
Updated as of March 2015, they are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. The Principles are intended for broad use by the market: they provide issuers guidance on the key components involved in launching a credible Green Bond; they aid investors by ensuring availability of information necessary to evaluate the environmental impact of their Green Bond investments; and they assist underwriters by moving the market towards standard disclosures which will facilitate transactions.
Download the Green Bonds Principles here.
The Climate Bonds Initiative has been supportive of the Principles from their launch, seeing them as an important market education activity. The Climate Bond Standards build on the Principles, incorporating their suggested reporting guidelines as requirements, and providing clear criteria for assets and projects to which green bond proceeds can be be allocated.