2 Replies Latest reply: Sep 19, 2017 12:54 PM by kmzz RSS

    Which countries have a   national green bond policy   in place?

    kmzz C4D Connoisseur

      Help us to compile a database on available national green bond policies  

       

      While the Climate Bond Initiative and ICMA both have created great reference frameworks for issuance of green bonds, selected countries have ventured into providing own domestic policies. Those could be guidelines, incentives, or other policies by regulators or central banks...


      Let's jointly stay up-to-date on this development  - share with us any other initiative, or more details on below examples. Thank you!

       

      Countries with green bond policies in place:

      • China: China Securities Regulatory Commission issued guidelines broadly aligned with People's Bank of China's (PBoC) green definitions, with minor provisions. PBoC China is exploring the possibility of allowing green bonds in the bank’s collateral framework as well as the integration of green lending in macro-prudential assessment frameworks
      • India: Securities and Exchange Board of India (SEBI) has finalised its guidelines for domestic issuers
      • Singapore: Monetary Authority of Singapore (MAS) has launched a Green Bond Grant Scheme to support issuers with the cost of external reviews


      Underway:

      • Indonesia
      • Japan
      • Luxembourg
      • Nigeria
      • South Africa
      • Taiwan

       

      Any thoughts? more info? Which are the national policies you know of?

      more details on the above, please see: CBI's Green Bond Policy Highlights Q1-Q2/2017

        • Re: Which countries have a   national green bond policy   in place?
          kmzz C4D Connoisseur

          Watch Kenya, as they launched a Green Bond Programme in March this year (2017).

          • "Financial Sector Deepening (FSD) Africa committed Sh62 million ($600,000) to support the exercise. The issuance of the region’s first bank-supported corporate bond will help fund projects that support sustainable environment in areas of energy, agriculture, waste management, water, transport and urban planning. (...) The FSD money will help in setting up strategy, standards and policy framework and possible amendment in regulations prior to floating the bond." (Source, March 2017)

           

          An earlier Press article (2016) presents the idea of the desired Kenyan green bond policy:

          • "The regulator noted that the bonds policy will contain a number of tax incentives required to make Kenya an attractive destination for issuing green bonds. The CEO said currently revenues from infrastructure bonds are tax free. [The same treatment shall be] extended to green bonds. According to the CMA [Capital Markets Authority], the green bonds policy will help make Kenya become a regional hub for green finance."
          • Re: Which countries have a   national green bond policy   in place?
            kmzz C4D Connoisseur

            It would be great to know what's new in Brazil regarding a green bonds policy...

            Sector experts see enormous green bond potential for Brazil - and progress there could encourage other developing countries with similar profiles. Brazil has about 59 million metric tons of carbon stored in its forests, approximately 70% of Latin America's installed wind power capacity, and around 6 million hectares of responsibly-managed forests (certified by the Forest Stewardship Council). See article: Private Sector Leadership and Green Bond Potential in Brazil (Jan 2017)



            Early 2016, Brazil published a Guide for Issuance of Green Securities (“Guia Para Emissão de Títulos Verdes no Brasil” -- see attachment) aimed at stakeholders of the Brazilian Green Bonds market, including potential issuers, underwriters, investors, and reviewers.; they are based on the Climate Bond Initiative's standards for green bonds (see CBI website, 2016). "The purpose of this Guide is to guide participants and stakeholders in the fixed income securities market in Brazil regarding the issuance of Green Securities."

             

            The guidelines were developed by a Working Group on Green Bonds convened by FEBRABAN (Brazilian Federation of Banks) and CEBDS (Brazilian chapter of the World Business Council on Sustainable Development) – with technical support from the NGO SITAWI Finance for Good and the Center for Sustainability Studies of Getúlio Vargas Foundation (FGVces).

            Banco BTG Pactual, BB DTVM, Itaú Asset Management, Santander Asset Management, SulAmérica Investimentos and UBS Brasil signed the Brazil Green Bonds Statement (see attachment) on October 2016, during the launch event of the ‘Guide to Green Bond Issuing’ in Brazil, in São Paulo. In June 2017, three more institutions - Brasilprev, Zurich Brasil and Zurich - Santander - signed the Statement committing to the transition to a sustainable local economy.