Climate Bonds Initiative August 2014

LIMA CLIMATE FINANCE WEEK, A!"T 2014

Bonds and
Climate Finan#e
Mo$ili%ing de$t #a&ital ma'(ets )o'
#limate #*ange solutions
"tua't Clenag*an
"enio' Fello+
Climate Bonds Initiative
Climate Bonds Initiative August 2014
T*e Climate Bonds Initiative
Net+o'(ing and Advo#a#,
Climate Bond "tanda'ds
- .e)initions )o' investo's and guidelines )o' $ond issue's
- Assu'an#e t*'oug* #e'ti)i#ation
/oli#, Models and !ove'nment Advi#e
- In#entivise &'ivate investment t*'oug* 'egulato', measu'es
- 0o+ to $est leve'age &u$li# se#to' )inan#e
Ada&ting Ma'(ets
- !'een se#u'itisation
- Cove'ed $onds
- C*ina, India, Islami# )inan#e
Climate Bonds Initiative August 2014
La$elled 1!'een Bonds2
E
s
t
i
m
a
t
e
d

3
4
0
$
n
4
Climate Bonds Initiative August 2014
3502$illion #limate6t*emed $onds 6 2014
Ene'g, 37487$n
Climate Finan#e
350$n
Buildings
9 Indust', 1:85$n
T'ans&o't
3:5;$n
Climate Bonds Initiative August 2014
!lo$al $ond ma'(ets a'e 3;0 t'illion in si%e <E=uit, ma'(ets total 3>: t'illion?
Mo'e t*an *al) o) all mone, managed $, institutional investo's is in $onds
W*, $ond ma'(ets matte'
/ension Funds
Insu'an#e Com&anies
"ove'eign Wealt* Funds
Mutual Funds and Foundations
30 35 310 315 320 325 3:0 3:5
Assets unde' Management <" $illion?
Climate Bonds Initiative August 2014
@Failing to a#(no+ledge, add'ess and mitigate t*e signi)i#ant e#onomi# 'is(s
'aised $, #limate #*angeAmeans a )ailu'e to meet ou' )idu#ia', dut,B
Colin /u'die, Aviva <C2:0$illion assets?
Investo's #a'e
$45 trillion of assets under management
Climate Bonds Initiative August 2014
W*at ma(es a 1Climate2 o' 1!'een2 BondD
It2s a$out t*e
proceeds going
to !'een
&'oEe#ts
F /'o#eeds to 'ing6)en#ed g'een &'oEe#ts
F Labelled market: $onds ma'(eted as 1g'een2
F Unlabelled market: $onds t*at meet t*e
#'ite'ia $ut not la$elled
An, issuing
entit,
F !ove'nments and develo&ment $an(s
F Co'&o'ationsG $ut asset6lin(ed, o' 'ing6)en#ed
F Asset6$a#(edG ///s, $an(s, utilities
Hust t*'ee
'e=ui'ementsA
F Meet t*ose g'een de)initions
F !et a #'edi$le 2nd o&inionG Climate Bonds <.NI,
K/M!, Bu'eau Ie'itas?, CICEJK, Iigeo, et#8
F Je&o't on use o) &'o#eeds
Climate Bonds Initiative August 2014
"#aling u&
!'een Bond /'in#i&les L avoid 1g'een6+as*ing2
Je&o't use o) &'o#eeds and inde&endent 'evie+
Climate Bond "tanda'ds
K&en a##ess guidelines de)ine +*at &'oEe#ts =uali),
Ce'ti)i#ation gives investo's assu'an#e
/u$li# se#to'
"ta't ma'(ets t*'oug* #o'ne'stone $ond issuan#e
B'idge 'is( e8g8 gua'antees, #'edit en*an#ement, su$sidies, taM in#entives
"u&&o'tive &oli#, and )inan#ial 'egulation
!'een se#u'iti%ation
F'ee u& $an( #a&ital )o' ne+ lending
Cit, and sove'eign g'een $onds
Climate )'iendl, in)'ast'u#tu'e
Climate Bonds Initiative August 2014
+++8#limate$onds8net
NClimateBonds
Climate Bonds Initiative August 2014
Agen#,
"u&'a Nationals
"u&'a Nationals
Co'&o'ations
Co'&o'ations
0
2
4
>
;
10
12
14
1>
1;
20
2012 201: 2014
U
S
$

b
i
l
l
i
o
n
s
Cities
La$elled 1!'een Bonds2
Climate Bonds Initiative August 2014
Greenko India $550m B 5yr Wind farm
Je#ent *ig*lig*ts
Advanced
Semiconductor
Engineering
Taiwan $300m BBB yr Green factories
!fW Germany "#$5billion AAA 5yr %enewable
energy
Britis&
'olumbia
'anada '$(3#m A) 3(yr Sustainable
&os*itals
'ity of
+o&annesburg
Sout& Africa %#$5billion BBB #0yr %enewable
energy, waste,
mass)transit
Climate Bonds Initiative August 2014
0 10 20 :0 40 50 >0
Ban(s
Cent'al $an(s
Co'&o'ations
Fund manage's
/ension )unds
All K)W $onds
K)W !'een Bond
&e'#ent
O185$illion K)W 5 ,ea' L Hul, 2014
Climate Bonds Initiative August 2014
!'een Cit, $ond issue's
Cit, o'
"u$6national
govt8 entit,
F 1!ene'al K$ligation2 L &'o#eeds to g'een &'oEe#ts
F Modelled on !ot*en$u'g, Ile de F'an#e,
Massa#*usetts
!ove'nment o'
develo&ment
$an(s
F /'o#eeds ea'ma'(ed )o' #it,
F tilise +*e'e #it, does not *ave $ond6issuing &o+e'
Cit,
in)'ast'u#tu'e
entities
F Co'&o'ate $onds, o' 1'evenue $onds2 $a#(ed $, #as*
)lo+ and aut*o'ised $, #it,
F /u$li#6&'ivate &a'tne's*i&s
F !'een in)'ast'u#tu'e
F Aut*o'ised $, #it,
Co'&o'ations
aut*o'ised $,
#it,
Climate Bonds Initiative August 2014
EM&e't6led de)initions
Low 'arbon and 'limate %esilience Economy
Energy
Jene+a$le
Ene'g,
.ist'i$utionP
Management
Ene'g,
sto'age
Energy
Efficiency
!'een
$uildings
<ne+ 9
eMisting?
EE
te#*nolog,
9 &'odu#ts
!'een
'esidential
mo'tgages
Trans*ort
/u$li#
t'ans&o'tG
'ail, $us 'a&id
t'ans&o't
Ele#t'i#
ve*i#le
in)'ast'u#tu'e
Waste
management
Waste to ene'g,
Met*ane #a&tu'e
Water
"to'm +ate'
ada&tation
Wate'
t'eatment
Urban
consolidation
/edest'iani%ati
on
/u$li# s&a#e
'enovation
Ada*tation
Ada&ting
in)'ast'u#tu'e
to *eat st'ess
Ada&t to 'ising
sea levels e8g8
&o'ts
"to'm su'ge
&'ote#tion
Bi#,#le
in)'ast'u#tu'e