Green Bonds, Climate 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.
2019: Global Green Bond Market:
$USD180-250 Billion forecast
This is a very small fraction of the Annual Global Bond market....
2018 Global Bond Market: $USD103 Trillion
The Green Bond market is growing at around 25-30% per year, depending on market location.
Source: Climate Bonds Initiative website accessed 21 October 2019
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.
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 started officially considering the question of just what "green" means in the financial sector, and on the other side of the world, the New Zealand Financial Markets Authority began a similar investigation in September 2019.
In our view, the key criteria for defining a reliable "green bond" (or any other financial product which claims to be "green" or "blue" or "climate-friendly"), is that the project for which the money is used must be independently certified, in itself, as truly sustainable.
This should be done using an ISO 14000-series life-cycle based assessment (to get the full picture), including ESG appropriate for the industry sector involved, and performed by an independent (third party) government registered, science-based certification agency. Certification reports should be easily accessed and publicly available for free, including a simple executive summary that lay people can understand.
Whether or not the "Green Bond" or "Climate Bond" money itself is sourced from a truly sustainable activity is another issue, but it is also easy to assess and certify the sustainability of the source using our "Green Tracer" technology.
Green Tick Certification Limited is already there, providing the financial services market with a truly independent, transparent, science-based, legally robust and reliable system for Green Bond and Climate Bond certification.
Green Tick - The Ultimate Ecolabel.