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

The Climate Bonds Initiative has released the Discussion Paper: The Role of Exchanges in Accelerating the Growth of Green Bond Market jointly with Luxembourg Green Exchange. We are now seeking feedback from exchanges around the world before the final version is released in mid-May.

 

Download the report here.

 

Report summary:

 

  • Exchanges are important for green bond market growth as they can:
Facilitate the investor decision-making process by providing financial services, guidance, training and tools for investors.

Provide issuers with access to a wide range of investors

Improve the liquidity of green bonds by enabling greater market connectivity and more centralised liquidity than the over-the-counter (OTC) market

 

Next steps- Exchanges can accelerate the growth of the green bond market by:

o   Promoting green bond transparency by encouraging the use and development of robust standards leveraging existing standards and where possible
o   Developing green bond guidelines clarifying criteria for the eligibility of projects, and guidance for reporting.
o   Establishing green bond lists/segments that enable investors to discover and invest in climate solutions.
o   Supporting green bond indices and ETFs

Through this steps we hope to further market education and foster dialogue on green bonds between all market participants including regulators, investors, issuers, rating agencies, international standard-setting bodies, certifiers and auditors.