Green Bonds, Climate Bonds, Blue Bonds and other "green" financial services instruments are loans or investments that are used to finance "green" projects.
The Green Bond market has expanded rapidly in the past decade from its first beginnings with a European Investment Bank climate awareness bond issued in 2007.
2020: Global Green Bond Market:
This is a very small fraction of the Annual Global Bond market:
2020 Global Bond Market: $USD128.3 Trillion
The Green Bond market grew 19% in 2020 (previously 25-30%), slowed by COVID-19.
2020: Green Bonds Certified: <25%
Most of these are 1st or 2nd Party claims. 3rd Party certifications against independent ESG standards estimated at <5%.
On examination, most "certification" reports are actually desk-top based 1st or 2nd Party verifications with no independent site inspections, field reviews or adequate monitoring of the "green" project financed by the "Green" Bond.
Green Bond Certification
Click left on document to download certification standards.
This document details Green Tick certification standards for Green Bonds and Green Bond Projects compliant with the public disclosure requirements of Government financial and consumer authorities. Green Tick Certification Limited has a set of ready-made, proven, generic sustainability standards that can apply to Green Bonds, Climate Bonds, Blue Bonds, and Green Bond Projects of any type.
In the Certification Report, key Environmental, Social and Governance (ESG) criteria are stated by industry sector under the relevant sustainability standard. ESG assessments are performed by suitably qualified independent scientists and engineers. Pre- and Post-Issuance assessments are standard.
Certification reports are produced in English (as a minimum requirement), with a short Summary for a non-technical audience. The reports are available free on-line on the Green Tick Register. Bond performance is available by a link to the relevant financial institution's website.
Green Bonds and Green Bond Projects that hold a Green Tick Certification are listed by bond type and project type on the Green Tick Register. They also gain an automatic "GGG" (Triple G) Green Rating from our sister company GreenXperts Limited. Independent Green$Intelligence™ (G$I) reports on offerings for investors are also available at GreenXperts.
Green Bond Integrity
"Green Bond" and "Climate Bond" offerings are proceeding at pace worldwide, however, questions are being raised as to the integrity and reliability of some so-called "green bonds".
In October 2018 the United Kingdom Financial Conduct Authority officially considered the question of just what "green" means in the financial sector, and reported in October 2019 that some "green" financial products were not materially different in exposure from other financial products not labelled "green".
EU standards on sustainability disclosure will be in force later in 2021, and recently the European Securities and Markets Authority (ESMA) has called for stronger regulation of green claims on "green" financial products.
Green Tick Certification is already there, providing the financial services market with a proven, truly independent, transparent, science-based, legally robust and reliable system for Green Bond, Climate Bond and Blue Bond certification.