2015 Green Bond Market Roundup$41.8bn labelled green bonds issued in 2015
Highlights of the year

Annual green bond issuance continues to grow
45

Policy support driving higher
market supply

40

There has been increasing involvement by emerging
markets given their strong political commitment togrow local green bond markets – inaugural bonds,green bond framework and policy development inChina (Goldwind and Agricultural Bank of China)
and India (Yes Bank, CLP, Export-Import Bank ofIndia, and IDBI). Development banks also play anactive role in scaling up the green bond marketthrough credit enhancement.

35ABS
Corporate

30

Muni/Provincial/City

25
20
15

11.5

USD Billions

102.6
502012Strong demand frominstitutional investors
Continuously growing investor demand, particularly
by institutional investors and corporate treasuries,
is shown in oversubscriptions as well as billions inpledges from; HSBC, Barclays, Credit Agricole CIB,Deutsche Bank and KfW; to invest in green bonds.

Review and audit is the flavourof the year
Second review becomes more common inissuance. There are some new precedences inproviding second review for green bonds by banks
and U.S. municipalities (e.g. Morgan Stanley,Renovate America, Central Puget Sound Transit,
and DC Water).

Evolution of standards
and guidelines
The Climate Bond Standard V2 was launched inDecember, along with the development of sectorspecific standards on Water, AFOLU, Geothermal,
Bioenergy, Low Carbon Transport and Low Carbon
Buildings. Another key development was the updateof Green Bond Principles in March to includes moreemphases on reporting and assurance.

37

BankDevelopment Bank

Diverse range of issuers financing awider range of green assets
Similar to 2014, the entry of more corporates,banks, and municipalities into the green bondmarket bolstered growth in 2015. There was also awidening of the type of projects financed by green
bonds with more proceeds leveraged for other green
sectors (i.e. low carbon transport and water).

41.8

2013

2014

2015

ȬǍ࣭Ǎธ௏̱ਨ਽ǐ2015 green bond proceeds

Waste and Pollution 5.6%

Agriculture and Forestry 2.2%
Climate Adaptation 4.1%

Sustainable
Water
9.3%

Renewable
Energy45.8%

Low Carbon
Transport
13.4%

EnergyEfficiency
19.6%

ȇǍ‫ڬ‬Ǎࠫǐ

Most reporting on green bonds is publica year after issuance

The rising tide on reportingNo - Reporting due(bond was issued
more than 1 yearago and no public
report) 4%

No (bondwas issued
less than1 year ago)51%

Yes (reportis publiclyavailable)
45%

2015 Top 5 largest green bonds

1. KfW - $1.66bn (€1.5bn)
2. ING Bank - $1.3bn (€0.5bn & $0.8bn)
3. Electricite De France (EDF) - $1.25bn
4. Toyota Finance - $1.25bn (in 6 tranches)
5. Tennet Holding BV - $1.12bn (€1bn)

Importance of reporting
Reporting is key to validating the green credentialsof the bonds. Investors need to know what theirgreen bond holdings are financing. The Climate
Bonds Initiative strives to dive further into reportingon trends and market states in 2016.

There have been increasing efforts
in green bond reporting
We have seen higher quality in reporting (e.g. EIB
Climate Awareness Bonds broke down proceeds
allocation by bonds and projects). There have also
been strong trends in establishing outcome KPIs,
disclosing reporting framework, and committing tothird-party assurance on reporting.

Majority of issued green bonds
provide annual reports
Half of outstanding green bonds were issued morethan a year ago, and therefore should have produced
a green bond report. The majority of them havedisclosed annual reports. Over 90% of the reports
disclosed on proceed allocation and climate impacts
of projects or assets financed.

Growing awareness in the market
In addition to the update of the Green Bond
Principles wording on reporting, several
development banks jointly drafted a framework onGreen Bond impact reporting harmonization.

From tall trees to green shoots: green bonds are spreading across the world
Norway $0.9bn
Estonia $0.06bn
UK $0.7bn
Netherlands $4.1bn
United States$10.5bn

Latvia $0.08bn
Denmark $0.6bn
Germany $5.6bn
China $1.0bn
India$1.1bnMexico $0.5bn¼ of total
issued amountcame from theUS – $10.5bn
mainly driven
by municipal
green bonds.
US surpassed
supranational
institutions andis the largest
green bondissuing country
in 2015.

7 new countries joined the green bond market
this year: Brazil, Denmark, Estonia, Hong
Kong, India, Latvia, & Mexico. They jointly
added $3.2bn green bonds to the market.

Japan $0.5bn
Hong Kong $0.3bn

Brazil $0.6bn

Europeremains
the region
hosting themost green
bonds, with$18.4bn
issued in2015.

Markets keep on growing; seven countries (U.K.,
China, Germany, Japan, Netherlands, Norway, andU.S.) have shown significant growth in green bondmarket size this year.