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Presentation to OECD Green Investing Financing ForumADB InstituteTokyo, 13 & 14 October 2016
Labelled Green Bond Issuance
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*0
10
20
30
40
50
60
70
80
90
100EstimatesExtrapolatedABSProjectOther Corporate*FinancialsUtilities/EnergyUS municipalOther SSAKfWIFCIBRDEIB
USD billion
Corporate
ABS &Project
$72 bn BNEF 2016 extrapolation (based on current issuance rate)
$80 bn SEB estimate
$85 bn HSBC est.
$70 bn S&P estimate
$52 bn 9 June 2016
$100 bn CBI est.
SSA
Source: Bloomberg and CBI data in OECD (2016, forthcoming) Mobilising the Bond Markets for a Low Carbon Transition
Outstanding Green Bonds by Country (August 2016)
Source: CBI/HSBC (2016)
Supranationals23%
United States19%
France12%
China10%
Germany9%
Netherlands8%
Sweden4%
Canada2%
India2%
Norway1%
Rest of theWorld10%
Green Bond Ecosystem
External Reviews
GB Standards and Taxonomies
Green Bond Principles
Green Bond Principles community (as of 30 Sept 2016)
48%
28%
24%
Members (123)
Underwriters (59)
Investors (35)
Issuers (29)16%
18%
5%1%
3%30%
27%
Observers (77)
Financial Institutions (12)Law/accounting firms (14)Market infrastructures (4)Insurance Cie (1)Public sector officials (2)NGOs & others (23)Services Providers (21)
GBP 2016 Executive CommitteeInvestors Issuers Underwriters
ACTIAM EBRD BoA MERRILL LYNCH
BLACKROCK EIB BNP PARIBAS *
CalSTRS ENGIE CREDIT AGRICOLE CIB
KFW IFC HSBC
MIROVA NIB * JP MORGAN
STANDISH MELLON A M UNIBAIL-RODAMCO MORGAN STANLEY
TIAA-CREF UNILEVER RABOBANK
ZURICH ASSURANCE GROUP WORLD BANK SEB
*newcomers
GBP ContinuityThe GBP remains based on four pillars:
• Use of Proceeds• Process for Project Evaluation and Selection• Management of Proceeds• Reporting
And External Review (formerly Assurance) recommendations
Under the Governance of the Green Bond Principles (GBP) it is the Executive Committee that decides on updates of the GBP with the input of members and observers through annual consultations that are organised by the Secretariat.
GBP 2016 Update
Highlights of the GBP 2016 Update
Recommended online public disclosure of Green Bond issuer alignment with the GBP through GBP Resource Centre
Updated and additional Green Project categories Clarifications on Green Bond issuer reporting obligations and disclosure, as well as resources
for impact reporting External review definitions and public disclosure on the GBP Resource Centre Definition of Green Bonds vs pure play and climate/green themed bonds Release of Guidelines for Social Bond issuers
Updated use of proceeds categoriesRenewable energy (including production, transmission, appliances and products)
Energy efficiency (such as in new and refurbished buildings, energy storage, district heating, smart grids, appliances and products)
Pollution prevention and control (including waste water treatment, greenhouse gas control, soil remediation, recycling and waste to energy, value added products from waste and remanufacturing, and associated environmental monitoring analysis)
Sustainable management of living natural resources (including sustainable agriculture, fishery, aquaculture, forestry and climate smart farm inputs such as biological crop protection or drip-irrigation)
Terrestrial and aquatic biodiversity conservation (including the protection of coastal, marine and watershed environments)
Clean transportation (such as electric, hybrid, public, rail, non-motorized, multi-modal transportation, infrastructure for clean energy vehicles and reduction of harmful emissions)
Sustainable water management (including sustainable infrastructure for clean and/or drinking water, sustainable urban drainage systems and river training and other forms of flooding mitigation)
Climate change adaptation (including information support systems, such as climate observation and early warning systems)
Eco-efficient products, production technologies and processes (such as development and introduction of environmentally friendlier, eco labelled or certified products, resource efficient packaging and distribution)
GBP Regulatory Recognition• China has released Government guidelines largely based on international
market practices referring to the GBP and with an official taxonomy for environmental projects.
• France has released an official label for green funds which makes alignment with the GBP a requirement in addition to respecting guidelines for eligible environmental projects
• The Securities Exchange Board of India has released listing disclosure requirements for Green Bonds based on the GBP and international market practice
