Thematic projects

The reporting on green bond market developments in our blog includes commentary on policy development relevant for green bonds, as well as deep dive posts discussing policy issues.

  • Green Securitization

Renewable energy and energy efficiency markets are fragmented and individual projects are small, making them difficult sectors for institutional investors to invest; aggregation is required. A market for securitization of green assets is needed. As well, major banks are facing re-capitalization pressures, which drastically reduces their lending capacity. A green loan securitization market would enable them to do more with less in the green investment space. Securitization has been beneficial in the past and is crucial to both economic recovery and green growth — if it is regulated properly.

This project is developing policy agendas and proposals, building a supportive coalition and working on design of aggregation platforms. As part of the work on securitization, the Climate Bonds Initiative is a member of the US Department of Energy National Renewable Energy Laboratory’s Banking on Solar working group.

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Sponsorship opportunity available (link sends e-mail).
 

Green Securitisation Roundtable took place in London on the 8th of June:

The Roundtable will feed into a Green Securitisation policy paper the Climate Bonds Initiative is working on in collaboration with the Grantham Institute for Climate Change at the London School of Economics

The project will:

  • Provide a briefing for European policymakers and set out an actionable agenda for them to support the growth of a green securitisation market in Europe. It will be published in September 2015. 
  • Feed into the final report from the UNEP Inquiry into a Sustainable Financial System, as well as a green bond report from the OECD.  

Read the Discussion primer for the green securitization roundtable

The Roundtable will feed into a Green Securitisation policy paper the Climate Bonds Initiative is working on in collaboration with the Grantham Institute for Climate Change at the London School of Economics (link is external)

The project will:

  • Provide a briefing for European policymakers and set out an actionable agenda for them to support the growth of a green securitisation market in Europe. It will be published in September 2015. 
  • Feed into the final report from the UNEP Inquiry into a Sustainable Financial System, as well as a green bond report from the OECD.  

- See more at: http://www.climatebonds.net/2015/05/youre-invited-green-securitisation-r...

  • Green Covered Bonds (green dual-recourse bonds)

Covered Bonds have, in many countries, proven to be a successful means of channelling capital into areas of policy priority such as housing and public sector buildings. They can be applied to climate change solutions by expanding legislative coverage and through tweaks to existing products (e.g. green mortgages). This project is outlining policy options to enable a green covered bond market.

  • Green City Bonds

There is a significant opportunity for climate mitigation and adaptation action at the municipal level, as cities account for an increasing share of the global economy and population. Cities can issue green bonds to fund their investment programs. This project includes developing how to issuance guides tailored at the country level.

The Climate Bonds Initiative has launched a US Green City Bonds Coalition with C40 Cities Climate Leadership Group, CDP, Natural Resources Defense Council, Ceres and As You Sow. The Coalition is providing educational materials, webinars, seminars to US cities on why and how to issue Green City Bonds, and will work closely with other Green City Bond Coalitions to be launched in other countries and regions to create a global network.

  • Green Sukuk

The market of Islamic finance, including sukuk, is growing rapidly. There is an opportunity to tap into this capital pool for green investment. Moreover, several of the characteristics of sukuk issuance provide a good fit with the processes required to ensure green credentials of issuance.

The Climate Bonds Initiative is part of a Green Sukuk Working Group, a Gulf-based coalition developing finance models for renewable energy that meet the needs of Islamic investors.  The Working Group has been set up with the Clean Energy Business Council (link is external) of MENA and the Gulf Bonds and Sukuk Council (link is external).

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Funding opportunity available (link sends e-mail).

  • Green bonds and the financial system

Climate Bonds Initiative is working with UNEP Enquiry into the Design of a Sustainable Financial System. This project will be produce the first guide for governments on the policy options available to mobilise bond finance for sustainable development.