Reports

2016 COP22 Report: Green Bond Directions

This paper was released by the Climate Bonds Initiative in November 2016 ahead of the COP22. The paper outlines growing awareness green bonds as NDC financing tools.

Highlights

  • Climate finance through the green bond market has grown substantially in 2016, funding both climate mitigation and adaptation efforts. Issuance in 2016 is on track to be more than double that of 2015.
  • Growth in 2016 has been driven by government action and demonstration issuance in China - soon to be the world’s largest green bond market - with other emerging markets growing, including India, Brazil and Mexico.
  • Green bonds are now being seen as a capital raising tool to meet mitigation and adaptation targets set out in the Nationally Determined Contributions (NDCs).

Download report here

German Green Bond Market: Update: May 2017

CBI and Deutsche Börse: German Green Bonds: Update & Opportunties– May 2017

Climate Bonds Initiative has released a new paper produced in collaboration with Deutsche Börse, analysing the growing German green bond market.

Currently, the German market represents the 4th largest green bond issuer worldwide, after China, and the 2nd in Europe, after France. 

Download report here

 

China Green Bond Market 2016

 This report, which was produced jointly by Climate Bonds and China Central Depository & Clearing Co. Ltd. (CCDC), provides a detailed analysis of the:

  • Characteristics of the domestic green bond market in China, according to green definitions from both the PBOC’s Green Bond Endorsed Project Catalogue and the international Climate Bonds Taxonomy (with charts)
  • Growing role of corporate issuers and diversity of bond structure, for example green ABS and green covered bond
  • Green bond market infrastructure and verification tools available
  • Major policy developments of the last year, from the launch of the PBOC’s announcement on green bond guidelines in December 15 to the establishment of the G20 Green Finance Study Group (GFSG)

 

Green Bonds Policy: Highlights from 2016

Our policy team's roundup of  green bonds public sector action over the past year and major developments we look forward to seeing in 2017.

Top five green bond policy developments 2016:

  1. Green bonds seen as a key tool to implement national climate change targets (NDCs)
  2. Sovereign green bond programmes established
  3. Country-level action taking off
  4. Innovative green bond policy tools are on the table
  5. Increased international collaboration on green finance and green bonds: G20, FSB and EC
Green Bonds Market Highlights 2016

Climate Bonds 2016 highlights: The big issuers: The big numbers: The trends that count and the 2017 forecast

A maturing of the green bonds market, diversification across issuers, products and use of proceeds are the main trends identified in our Green Bonds Highlights 2016 summary. 

Study of China's Local Government Policy Instruments for Green Bonds

This report is jointly released by SynTao Green Finance and Climate Bonds Initiative at China's Green Finance Committee Annual Conference in April 2017. It provides an overview of local government policy instruments for developing green bond market in China with further recommendations. 

The Role of Exchanges in Accelerating the Growth of the Green Bond Market

 

The Role of Exchanges in Accelerating the Growth of Green Bond Market was launched jointly with Luxembourg Green Exchange on 18 May 2017.

 

Download the report here.

 

The discussion paper outlines developments to date and examines the strategic role that exchanges can play in assisting and stimulating green bond market growth by:

-facilitating market liquidity,

-geographic diversity,

-investor access and

-market integrity.

This approach can also enhance their reputation and credibility, protect investor interests, and attract green assets.

A number of stock exchanges were consulted in preparation of the paper including the Luxembourg Green Exchange (LGX), London Stock Exchange (LSE), Borsa Italiana (BI),The Nigerian Stock Exchange (NSE) and Johannesburg Stock Exchange (JSE).    

 

 

6 Core Recommendations

The paper outlines six recommendations for exchanges to help accelerate the growth of the green bond market:  

  1. Developing green bond guidelines in order to pave the way for green bond issuances and listing.
  2. Promoting transparency and encouraging the development of common practices that increase investor confidence.
  3. Establishing green bond lists or segments that enable investors to easily discover and invest in assets addressing to climate change.
  4. Supporting green bond indices or ETFs and thus make it easier for investors to track the performance of green bonds, and compare returns and volatility with other investments.
  5. Fostering market dialogue and collaboration among all market participants, including regulators, investors, issuers, rating agencies, international standard-setting bodies, certifiers and auditors.
  6. Fostering market education and assisting investors in understanding wider climate risks and opportunities.

We hope that this report makes clear the value of stock exchanges for the growth of the green bond market.

Download the report here