2015 Green Bond Market Update2015 Green Bonds (GB)highlights

Growing momentum in green bond issuance5040

1st Chinese RMB offshore GB:
30

1st Mexican GB,
Climate Bond Certified:

20$500m by National Financiera (Nafin)

1st Japanese Corp GB:$500m by Sumitomo Mitsui Banking Corp

1st India GB:

USD Billions$994.5m by Agricultural Bank of China

Asset-backed securities
BankCorporate
Development Bank
Municipal

1002012

2013

2014

2015 YTD**Year-to-date as of Nov 27, 2015

Diversity in green bonds$161.5m by Yes BankGreen bond market is growing more diverse in terms of geography andtype of issuer.

1st Brazilian GB:

An important development in 2015 came with a spike in green bondissuance from emerging market domiciled issuers. First to market was
India’s Yes Bank, followed quickly by Export-Import Bank of India and thendevelopment bank IDBI.

Largest municipal bond:

Next, China waded in with an off-shore corporate green bond from Goldwind
and the first on-shore green bond from Agricultural Bank of China. Partly driving
these issuances are the positive public sector support in India and Chinaand commitment to growing a large robust domestic green bond market.

Biggest month everfor GB issuance:$7.4bn issued in November 2015

Flurry of billion $ GB commitmentsfrom investors:
KfW, Zurich Insurance, ACTIAM, Barclays,
Deutsche Bank, HSBC, Credit Agricole.

Benefits of labelling
Grow and diversify the investor baseLabelling bonds as green attracts broader ESG /sustainable investor base.
Improve discoverability
Serve as a simple means to allocate funds toclimate or environmental investment.
Re-packaging kickstarts a market andleads to additionality
Labelling existing eligible assets will increase investorbuy-in, allowing bonds to expand towards lower
ratings and future assets to achieve additionality.

Before 2014 the green bond market was dominated by AAA issuance fromdevelopment banks, as expected in an early stage market. Since then,corporates, typically with lower ratings (though still largely investment
grade), are having a much larger share of the green bond accounting for
36% of issuance in 2015. Municipalities occupy a larger market share with
15%, followed by Banks at 12%.

Large liquid universe of climate bonds
already exists
Our annual flagship report,Bonds and Climate Change;
State of Market Report
2015, identifies the fullinvestment opportunity
in labeled green bondand unlabeled climatealigned bonds^.

bo$942.8m by Puget Sound Transit

ate-aligneClimd€500m by BRF SA, a food producer^ Un-labelled climatealigned bonds haveover 95% revenues fromclimate-aligned assets andlabelled green bonds declareearmark 100% of the proceedsof the bond sale for projects
or assets.

niveundrse $597.

7bn$65.9bnlabelled
Green BondUniverse$531.8bn
unlabelled
Climate-alignedBond Universe

As Of 2015

$97.8bnlabelledGreenBond
UNIVERSEGreen bonds finance a range of green
projects, with the largest proportion ofproceeds going to renewable energy andenergy eﬃciency projects

��Waste and Pollution 5.6%

Agriculture and Forestry 2.2%
Climate Adaptation 4.1%

Growing numberof Certified green bonds
the Climate Bonds Certification scheme provides a robust
approach to verifying that funds are financing projects thatdeliver a low carbon and climate resilient economy.
Certification allows investors to make quick decisions about
whether an investment is “green”.
National Australia Bank (NAB), ANZ Bank, ABN Amro,
Big60million, and Nacional Financiera all chose to havetheir inaugural green bonds certified against the Climate
Bond Standard and there are more in the pipeline.

sustiainable
Water
9.3%

Low Carbon
transport
13.4%

energyeﬃciency
19.6%

example action points for governments

1.

strengthening planning and pipeline transparency ofgreen projects
This allows potential issuers, investors and regulators to plan ahead
and develop improved expertise in relevant investment areas.

2.

Green bond issuance growing
across the world
40

Green bond issuance (bn USD)

Renewableenergy45.8%

3020

Supernational
North America
South America
EMEA
Asia Pacific1002011

2012

2013

2014

2015 YTD**Year-to-date as of Nov 27, 2015

Our Partners include*:strategic public demonstration issuance
Initial issuance can come from national treasuries, municipalities
and other city-aﬃliated entities and development banks.

3.

Market integrity: supporting standards development
Support efforts to establish common green definitions, standards,verification, certification and enforcement processes for green
bond market.

4.

strategic public green bond investment
Initial investment can come from public pension funds,
sovereign wealth funds and public sector treasuries, as well as
through establishing a specific public investment fund for green
infrastructure.

5.

Improving the risk-return profile of green bonds:
credit enhancement
Selective credit enhancement (e.g. partial guarantees,
subordinate debt and insurance) can make green bonds fit
institutional investors’ credit requirements.
Check out our public sector guide for scaling green bond markets
for more actions for governments and best practice examples.
*Climate Bonds has over 40 Partner organizations as of November 2015. These range from Institutional Investors, Green Bond Issuers, Underwriting Banks,
Financial sector service providers and NGOs. For more information about the Partners Scheme check out www.climatebonds.net/about-us/partners.