Sovereign Green Bonds

The 7 Steps to Sovereign Issuance

This Briefing is the latest in a new series of Climate Bonds publications analysing contemporary developments in the green bond market. The focus is on sovereigns, new issuers in the green bond space, and their key role in growing local markets and meeting national climate targets. 

Download the full report here.

Key highlights: 

  • Case studies of sovereign green bonds since Poland’s issuance in December 2016. Sovereign bonds from Poland, France, Fiji, Nigeria and Belgium are profiled. At a sub sovereign level green issuance from the Australian State of Victoria, North Rhine Westphalia in Germany, California and Ile De France are also examined.
  • The benefits of issuing a sovereign green bond, including providing strategic direction, attracting new investors, creating domestic green markets, mobilising private capital and leading on the international stage.
  • A detailed step-by-step guide on how to issue


Seven steps to issue a sovereign green bond

The process of issuing a sovereign green bond is similar to that of issuing a standard green bond. However, there are some additional steps to consider, given the more complex organisational nature of governments, the type of expenditures they can entail and their debt’s benchmark role in domestic capital markets.

The Briefing Paper outlines the seven basic steps and provides detailed examples of how countries have done this so far:

1. Engage governmental stakeholders
2. Establish a green bond framework
3. Identify eligible green budget items
4. Arrange independent review
5. Issue the green bond
6. Monitor and report
7. Repeat 


Download the full report here.

Acknowledgements: The Briefing Paper was written by Diletta Giuliani and Beate Sonerod with support from the Climate Bonds Team. Our thanks to the Polish Ministry of Finance, the French Treasury, the Nigerian Ministry of Environment and Mr Nick Robins for their input to the publication.​