19 Notable Green Bonds Media Stories — June 2014

Jay Owen Green Prosperity

Compiled by Sean Kidney of the Climate Bonds Initiative www.climatebonds.net

Includes WSJ, Global Capital, Boursorama and more

Lots of coverage this month. We’ve divided stories into six topics: Green Property Criteria, Calls for Standards and Clarity, Market Analysis and Market Growth.

Green Property Criteria

Coverage following the opening of the Public Consultation for Green Property Eligibility Criteria under the Climate Bonds Standard.

Calls for standards and clarity

Author puts an emphasis on a need for the market standardisation and rigorous monitoring of the use of proceeds in order to avoid greenwashing and mislabelling of bonds.

The growing green bond market needs to clarify what constitutes ‘green’ as there is still confusion among investors and those operating in the market about what green bonds are.

Market analysis

In this interesting analysis, author compares the ‘liking for green bonds’ of European and American investors. He says that issuances from Regency Centers and Vornado Reality mark the end of ‘American reluctance’ to green investments.

“Environmentally sound investment options, once confined to the equity market, are sprouting in fixed income.”

In an engaging/thought-provoking column, author explains why he ‘likes green bonds’ and lists Climate Bonds Initiative among the ‘positive aspects of what the capital markets are doing’.

“…And there’s the non-profit Climate Bonds Initiative, with its Climate Bond International ards and Certification Scheme; and the Climate Bond Standards Board under the umbrella of which environmental NGOs engage with large institutional investors.”

Market growth

Green bonds market approaching  $20bn attracted attention of responsible investor and Environmental Finance:

The analysis of investors behavior in the bond market lists Vornado Reality’s green bond as one of the main developments.  It quotes CBI’s view on its environmental value.

According to Sean Kidney, chief executive of non-profit group the Climate Bonds Initiative, both Regency and Vornado’s environmentally friendly bonds are on the paler side of green, because they specify that the bond proceeds can be used to fund new, ongoing or existing assets that have received any LEED certification label and not just the most environmentally superior LEED 4 certification. “Under-ambitious retrofits for LEED certification can be counterproductive because they tend to lock out bigger changes that achieve higher LEED certification, that result in deeper cuts in emissions,” said Kidney.

While complementing Vornado for maintaining equal pricing, the author muses on the green integrity of the bond.

Australian clean energy news portal cheers the scale of the global and local green bonds market’s growth.

Selon les estimations de Standard & Poor’s, le marché du « taux vert » devrait passer de 10 milliards de dollars en 2013 à plus de 20 milliards d’ici fin 2014. Selon le CEO du Climate Bond Initiative[1], les prévisions sont un doublement chaque année avec un objectif de 500 milliards de dollars en 2018 !

Según Climate Bonds Initiative, el volumen de emisiones de bonos verdes rondó los 9.000 millones de dólares en el primer trimestre. De esa cifra, 4.030 millones correspondieron a empresas y 4.900 millones a bancos de desarrollo (como Banco Europeo de Inversiones, Banco Africano de Desarrollo o Banco Mundial).