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Climate Bonds Reconvenes Low Carbon Buildings Technical Working Group
LONDON: 11/04/2016 15:00 BST: The Climate Bonds Low Carbon Buildings Technical Working Group (TWG) is reconvening to expand the reach of the ground-breaking Low Carbon Buildings Standard (LCBS) for investors, originally launched in 2014.
The LCBS is an investor-screening tool that applies emissions performance criteria to assess whether bonds issued to fund commercial and residential buildings and upgrade/retrofits deliver a robust level of environmental performance to qualify for Climate Bonds Certification.
The first green bond certified under the Low Carbon Buildings criteria was issued by the ANZ Bank in May 2015, with proceeds of A$600m allocated to green buildings, wind energy and solar energy loans in Australia, New Zealand and parts of Asia. This was followed by ABN AMRO who issued a certified €500m bond in June 2015.
The Technical Working Group has expanded its membership to include new representation from BRE Group, Better Buildings Partnership, Geophy, Environmental Defense Fund’s Investor Confidence Project and UNEP Finance Initiative and will be analysing international developments in sustainable building standards and building energy performance data to drive evolution of the LCBS.
The TWG will next meet in May and then on a bi-monthly basis.
Director, Environmental Defense Fund’s Investor Confidence Project Europe, Panama Bartholomy:
“Trust in environmental and financial results is essential to mobilizing capital for energy efficiency retrofits at the scale needed to turn the corner on climate change."
"We look forward to working with the Climate Bonds Initiative to ensure that investment in building projects deliver on their potential to increase savings and cut pollution.”
Energy Analyst, IEA, John Dulac:
“The energy savings potential in the global buildings sector is massive. Capturing this potential would deliver a large range of benefits, not least of which is the critical reduction of energy-related carbon emissions and other pollutants that pose a threat to human health."
"Action is needed today to promote building energy efficiency measures, and financing of highly efficient, low-carbon building projects is an important step forward to ensure that those measures become standard practice across the global buildings market.”
Special Advisor Long Term Finance and Energy Efficiency Coordinator, UNEP Finance Initiative, Annie Degen-Neuville:
“Buildings account for about one third of the global energy consumption and GHG emissions, and the IEA stresses the global importance of energy efficiency as it represents 49% of all measures to stay under 2°C."
"UNEP FI is pleased to support the reconvening of the LCB TWG. With so much expertise and good will this TWG will certainly help connect the urgent investment needs in the low carbon economy with the investor community’s requirements to develop responsible investments at the scale needed.”
Climate Bonds CEO Sean Kidney:
“Lowering the carbon intensity of the built environment in both newer and the more established cities and urban areas needs accelerated investment, particularly to assist nations to meet their INDC targets."
"The Low Carbon Buildings TWG will look to adapt the Standard to take into account the latest developments in low carbon and sustainable building assessment. This will provide additional guidance for investors seeking to make significant financial commitments in green bonds that fund low carbon building projects.”
For more information: Andrew Whiley,
Communications Manager Climate Bonds Initiative,
(+44 (0) 7506 270 943)
Notes for Journalists:
About Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. For more information, please visit www.climatebonds.net
About Standards: The Climate Bonds Standard is a general screening tool with sector specific categories that assists investors and governments to easily prioritize climate and green bonds with confidence that the funds are being used to deliver climate change solutions.
Certified bonds must meet the requirements of the Climate Bonds Standard with assets and projects funded falling in line with the relevant eligibility criteria.
About the Low Carbon Building Standard: The Low Carbon Buildings criteria sets out what property assets are eligible for certification under the Climate Bonds Standard and covers three different types of property assets:
- Commercial buildings: Buildings must be in the top 15% of their city in terms of emissions performance. This “hurdle rate” in emissions terms ratchets down to zero (carbon) in 2050.
- Residential buildings: Existing instruments such as local building codes, energy rating schemes (e.g. US Energy Star) and energy labelling schemes (e.g. Energy Performance Certificates in the UK) are leveraged as proxies for the achievement of the 15% hurdle rate.
- Upgrade projects: Building improvements that achieve emission reductions of 30% to 50% (depending on the bond term) from a business-as-usual baseline will qualify for certification.
About Technical Working Groups (TWG): Climate Bonds convenes a range of TWGs comprising experts from academia, international agencies, industry and NGOs to develop eligibility criteria for a Standard in each low-carbon investment sector. More information can be found here.
Current Members of the Low Carbon Buildings Technical Working Group (TWG)
- Panama Bartholomy, Director, Investor Confidence Project (Environmental Defense Fund)
- Tatiana Bosteels, Head of Responsible Property Investment, Hermes Real Estate
- Chris Botten, Programme Manager, Better Buildings Partnership
- Simon Brooker, Executive Director, Clean Energy Finance Corporation (CEFC)
- Annie Degen-Neuville, Special Advisor Long Term Finance and Energy Efficiency Coordinator, UNEP Finance Initiative
- John Dulac, Energy Analyst, International Energy Agency (IEA)
- Prashant Kapoor, Principal Industry Specialist, International Finance Corporation (IFC)
- Johannes Kreissig, Vice President Building & Construction, thinkstep
- LoÏs Moulas, CEO, Observatoire de l'Immobilier Durable
- Oliver Rapf, Executive Director, Buildings Performance Institute Europe (BPIE)
- Victor Rojas, Senior Manager, Clean Energy Finance, Environmental Defense Fund and Project Manager, Investor Confidence Project
- Peter Sweatman, Chief Executive, Climate Strategy & Partners
- Teun Van Den Dries, Founder & CEO, GeoPhy
- Ché Wall, Director, Flux Consultants
- Alan Yates, Technical Director, Sustainability, BRE Group
- Paolo Zancanella, Officer, European Commission (Joint Research Centre)
- Paolo Zangheri, Scientific Support Officer, European Commission (Joint Research Centre)
Disclaimer: The information contained in this media release does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments that any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.