The Policy & Practice of Climate Change & Water

Bonds and Climate Change: State of the Market 2017 Report from Climate Bonds Initiative

The ‘Bonds and Climate Change: State of the Market 2017’ report is in-depth analysis of the climate-aligned and labelled green bond markets. The Report quantifies all bonds where proceeds are being used to finance low carbon and climate resilient infrastructure. The dataset of this year's State of the Market includes 3,493 bonds from 1,128 issuers across seven climate themes: transport, energy, multi-sector, water, buildings and industry, waste and pollution, agriculture and forestry. The 2017 report also has a particular focus on cities with ten case studies identifying existing best practice green city bonds issuance along with opportunities for new city based issuance.

The State of the Market report has become the authoritative international analysis of both the labelled green bond and ‘climate-aligned’ bond universe. This year’s dataset includes all Climate-Aligned and Green Bonds issued after 1st January 2005 and before 30th June 2017.

CBI's Climate Bonds Standard and Certification Scheme provides clear, sector-specific eligibility criteria for assets and projects that can be used for Climate Bonds and Green Bonds. AGWA has played a key role in a consortium of organizations responsible for creating CBI's Water Sector Criteria. This water-specific standard provides a clear understanding of what sorts of investments are consistent with improving the climate resilience of water assets in order to help bond investors quickly determine the environmental credentials of water-related green and Climate Bonds. You can read more about the Water Criteria at https://www.climatebonds.net/standard/water.

A number of large Water Bonds have been issued recently, including the two below.
  • Cape Town issued its first green bond in July 2017, a ZAR1bn ($76mn) certified Climate Bond; the first certified green bond for South Africa, and the second South African city green bond after Johannesburg in 2014. Proceeds are supporting transportation, energy efficiency, wastewater, and coastal resilience projects.
  • San Francisco Public Utilities Commission issued the first Water Bond certified under the Climate Bonds Standard. It's initial issuance of USD 240m took place in March 2016. They followed up with another USD 259m issuance in December 2016.
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