The World BankGreen Bond Process Implementation Guidelines
a. World Bank specific criteria / definitions of green
The green bond program of the World Bank (International Bank for Reconstruction and Development, ratedAaa/AAA) supports the transition to low-carbon and climate resilient development and growth in client countries. This
includes both mitigation of and adaptation to climate change—all while observing the World Bank's safeguard
policies for environmental and social issues.
Eligible projects supported by the Green Bond program are selected by World Bank environment specialists and meet
defined World Bank eligibility criteria for low-carbon and climate resilient development. These criteria underwent anindependent review by the Center for International Climate and Environmental Research at the University of Oslo(CICERO). According to CICERO’s opinion, “the criteria combined with the proposed governance structure from theWorld Bank, provides a sound basis for selecting climate-friendly projects.”
The table below provides examples of mitigation projects and adaptation projects that meet the Green Bond eligibility
criteria and are eligible to be supported by the World Bank’s Green Bond program (hereafter “Green Bond Projects”):

Examples of eligible mitigation projects:
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Solar and wind installations;
Funding for new technologies that permit significant reductions in greenhouse gas (GHG) emissions;
Rehabilitation of power plants and transmission facilities to reduce GHG emissions;Greater efficiency in transportation, including fuel switching and mass transport;
Waste (methane emissions) management and construction of energy-efficient buildings;
Carbon reduction through reforestation and avoided deforestation.

Examples of eligible adaptation projects:
 Protection against flooding (including reforestation and watershed management);
 Food security improvement and implementing stress-resilient agricultural systems (which slow downdeforestation); Sustainable forest management and avoided deforestation.

b. Selecting projects that are eligible for financing by World Bank Green Bond proceeds.
All World Bank projects – including Green Bond
Projects – undergo a rigorous review andapproval process to ensure that the projects
meet client countries’ development priorities.
The process includes early screening to identify
potential environmental or social impacts anddesigning policies and concrete actions tomitigate any such impacts. Every World Bank
project is approved by its Board of Executive
Directors – a resident Board with 25 chairs
representing its member countries.
The lifecycle of a project financed by the WorldBank (IBRD) follows six stages as shown in thegraph below. World Bank- Green Bond Projects
not only follow the same stages as other WorldBank financed projects, including the due
diligence and monitoring process throughout theproject cycle, but in addition undergo three more
steps as shown in the outer circle of the graphbelow. From the outset of the Green Bond
Project cycle, environmental specialists get
involved in order to identify projects that meet
the Green Bond eligibility criteria.

c. Earmarking and allocating Green Bond proceeds
The graph below illustrates the Green Bond selection process including earmarking and allocating the World Bank’s
Green Bond proceeds. The proceeds are credited to a special account. They are invested in accordance with IBRD’sconservative liquidity policy until used for the support of the World Bank’s financing of eligible Green Bond Projects.
Disbursement requests for eligible projects take place in accordance with IBRD’s established policies and procedures.
Disbursements are often made over a period of several years, depending on when each project milestone is reached.
As disbursements are made for Green Bond Projects, corresponding amounts from the special account are allocatedto the general lending pool at least on a quarterly basis.

d. Monitoring and reporting on individual projects
The World Bank supervises the implementation of all projects it supports –including Green Bond Projects. Clientcountries implement the development projects in accordance with the project loan agreement. The supervision
process comprises regular reports by the implementing government agency on project activities, including a mid-term
review of project progress. The project's progress, outcomes and impacts are monitored by the government and theWorld Bank throughout the implementation phase in order to obtain data to evaluate and measure the ultimate
effectiveness of the operation in terms of the objectives it was set to achieve. World Bank project information isavailable on the main World Bank website and includes documents with detailed information about the projects (e.g.,Project Appraisal Documents). In addition, summaries and key impact indicators of the Green Bond Projects areprovided on the World Bank’s Green Bond website with links to relevant documents with more detailed project
information. Green Bond newsletters also provide highlights of these projects.

e. Ensuring compliance
Projects: Projects eligible under the Green Bond program comply with World Bank safeguards, procurement policies
and other procedures addressing project integrity. Compliance is assessed at the individual project level and throughindependent reviews of about a quarter of all projects. Project level reviews by the Bank’s specialists in environment,social aspects, financial management, and procurement ensure that adequate controls and management capacity arein place at the country/project level. In addition, the Independent Evaluation Group (IEG) conducts a post-review of
all closed projects’ completion reports, and in-depth performance assessments of about one out of four projects,
measuring outcomes against original objectives, sustainability of results and institutional development impact.
Green Bond Process: The World Bank Treasury follows procedures specific to its Green Bond program including
selecting and reporting on eligible projects, maintaining the separate Green Cash Account and reviewing portfolio
implementation progress to provide updated information for impact reporting purposes.
See http://treasury.worldbank.org/greenbonds for more information on the World Bank’s Green Bond program.
See www.worldbank.org/projectcycle for more information on the World Banks’ project cycle.
See www.worldbank.org/safeguards for more information on the World Bank’s environmental and social safeguard policies.
DISCLAIMER: This summary has been prepared by the World Bank (International Bank for Reconstruction and Development, IBRD) for information purposes only, and the World Bank makes norepresentation, warranty, or assurance of any kind, express or implied, as to the accuracy or completeness of any of the information contained herein. This summary includes references to andinformation relating to IBRD securities. Any such information is provided only for general informational purposes and does not constitute an offer to sell or a solici tation of an offer to buy any IBRD
securities. The securities mentioned herein may not be eligible for sale in certain jurisdictions or to certain persons.