Support for Green Bonds in Climate Finance Policy & Market Mix
Paris, Dec. 9 2015: Twenty-Seven global investors representing over USD 11.2 trillion of total AUM today issued the ‘Paris Green Bonds Statement”. Signatories have committed to support policies that drive the development of long term, sustainable global markets in green bonds as part of climate finance solutions.
Paris Green Bonds Statement signatories undertake to work through bodies like the Climate Bonds Initiative, with governments, development institutions, cities, commercial banks, NGOs and others. They commit to working to “grow a large and robust market that makes a real contribution to addressing climate change.”
The Paris Green Bonds Statement calls on;
- Industry experts and stakeholders: To develop clear standards for the climate change impacts and benefits of bond financed projects;
- Bond Issuers: To ensure transparency around the use of bond proceeds and their impact;
- Governments: to develop projects that can be financed by green and climate bonds.
Past years have seen the rapid growth of a Green Bonds and Climate Bonds market as a mechanism to tap the global bond market to finance solutions to climate change. USD 40 billion of Green Bonds have been issued this year, topping the USD 37 billion of 2014 issuance, and far above the USD 11 billion for 2013.
The use of green bonds as a climate finance mechanism has been increasingly raised by delegates and presenters in a variety of COP21 fora over the last seven days.
Climate Bonds CEO, Sean Kidney:
“Enormous opportunity exists to deploy green bond financing, to renew existing, ageing urban infrastructure and also in emerging markets and economies that will be building new energy and urban networks in the coming years.”
“The one hundred and eighty-five INDCs on the table here in Paris are one of the greatest achievements on the COP21 process. They will need climate financing to help reach their expressed goals and objectives. The Paris Green Bonds Statement reflects widespread institutional investor views that green and climate bonds have a part to play in sustainable and responsible investment to address climate change. “
The PGBS was coordinated by the Climate Bonds Initiative.