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."
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.