Form 4: New Work Item Proposal
Circulation date:2017-06-20
Closing date for voting:2017-09-12

Reference number: Click here to enter text.
(to be given by Central Secretariat)

Proposer (e.g. ISO member body or A liaisonorganization)

ISO/TC Click here to enter text./SC Click here toenter text.

SAC☒ Proposal for a new PC

Secretariat

N Click here to enter text.

SAC

A proposal for a new work item within the scope of an existing committee shall be submitted to thesecretariat of that committee with a copy to the Central Secretariat and, in the case of a
subcommittee, a copy to the secretariat of the parent technical committee. Proposals not within thescope of an existing committee shall be submitted to the secretariat of the ISO TechnicalManagement Board.
The proposer of a new work item may be a member body of ISO, the secretariat itself, anothertechnical committee or subcommittee, an organization in liaison, the Technical Management Board or
one of the advisory groups, or the Secretary-General.
The proposal will be circulated to the P-members of the technical committee or subcommittee forvoting, and to the O-members for information.
IMPORTANT NOTE: Proposals without adequate justification risk rejection or referral tooriginator.
Guidelines for proposing and justifying a new work item are contained in Annex C of the ISO/IECDirectives, Part 1.
☒ The proposer has considered the guidance given in the Annex C during the preparation of theNWIP.
Proposal (to be completed by the proposer)
Title of the proposed deliverable.
English title:
Green Finance: Assessment of Green Financial Projects
French title (if available):

Click here to enter text.
(In the case of an amendment, revision or a new part of an existing document, show thereference number and current title)

FORM 4 – New work item proposal
Version 01/2016

Scope of the proposed deliverable.

This International Standard specifies the classification of green financial projects.
This International Standard also specifies a framework for assessing green financial
projects, including principles, scope, methodologies, procedure, reporting, andassessment bodies.
This International Standard helps users to identify and assess green financial
projects.

FORM 4 – New work item proposal
Version 01/2016

Purpose and justification of the proposal*
Green finance is a kind of financing of investments that provide benefits in the broader
context of reduction in air, water and land pollution, reductions in GHG emissions,improved energy efficiency while utilizing natural resources and their co -benefits. Greenfinance could also facilitate the growth of high-potential green industries, promotetechnological innovation and create business opportunities for the financial indu stry. The
green finance market has a rapid growth recently. In 2015, global investment in energy
efficiency was USD 221 billion and in renewable energy was USD 442 billion. 1 Notably, thegreen bond market is booming and the global value is close to USD 90 billion in 20162.
Meanwhile, the development of green finance faces general challenges: 1) there is nouniversally accepted definition of green financial activities, either internationally or even at
the country or market level 3. As most green financial activities are based on projects, it isdifficult to allocate financial resources, manage risks, evaluate progress, understand
impact, communicate information, and design policy and regulations without appropriate
definitions and classification of green financial projects. 2) there are no common
guidelines for assessing green financial projects before investment decisions. Therefore,
financial institutes have difficulty to technically identify and assess the green financial
projects. It also weakens the credibility of the assessment by the third-party bodies. The
lack of standard in such areas can result in overinvestment in pollution intensive sectors
and underinvestment in green sectors. Therefore, the market needs are urgent forinternational harmonized definitions and guidelines to avoid investor confusion.
This International Standard will provide a universal definition and classification of green
financial projects based on international consensus and best practices. The harmonizeddefinition and classification will avoid the danger of not adequately reflecting different
contexts and priorities in different countries or markets as well as costly comparison
across institutions and markets and for cross-border green investment. This International
Standard will also provide a comprehensive framework for assessing green financial
projects. Considering many financial institutes have yet to develop the capacity to identify
and assess green financial projects, this framework can increase the confidence of green
financial projects as it can be assessed by financial institutes or the third-party bodies on acommon basis.
Therefore, it is necessary for policy makers, international organizations and the private
sectors to work together to develop a voluntary standard for classifying and assessing
green financial projects. This standard may help investors, firms, governments and thewider public for better projects identification, risk mitigation, understanding impact, andmobilizing capital for green investment. This could help level the playing field within andamong countries, and provide the foundations for scaling up green finance globally.
As the proposed working item does not fall in the scope of any existed IS O technicalcommittee, China (SAC) proposes to lead the process to develop the above -mentioned
standard through the establishment of a Project Committee. Liaisons will be establishedand maintained with related ISO technical committees for good coordination andconsistency of approach, and avoiding clashes or duplication.
Consider the following: Is there a verified market need for the proposal? What problem does
this standard solve? What value will the document bring to end -users? See Annex C of theISO/IEC Directives part 1 for more information.
See the following guidance on justification statements on ISO Connect:
https://connect.iso.org/pages/viewpage.action?page Id=27590861

1 Source: IEA report: World Energy Investment(2016)
2 Source: www.climatebonds.net
3 Source: G20 Green Finance Synthesis Report (2016)

FORM 4 – New work item proposal
Version 01/2016

Preparatory work (at a minimum an outline should be included with the proposal)☐ A draft is attachedinitial basis☒ An outline is attached ☐ An existing document to serve as

The proposer or the proposer's organization is prepared to undertake the preparatory workrequired:☒ Yes☐ NoIf a draft is attached to this proposal,:Please select from one of the following options (note that if no option is selected, the d efault
will be the first option):☒ Draft document will be registered as new project in the committee's work programme(stage 20.00)☐ Draft document can be registered as a Working Draft (WD – stage 20.20)☐ Draft document can be registered as a Committee Draft (CD – stage 30.00)☐ Draft document can be registered as a Draft International Standard (DIS – stage 40.00)
Is this a Management Systems Standard (MSS)?
☐ Yes ☒ No
NOTE: if Yes, the NWIP along with the Justification study (see Annex SL of the Consolidated
ISO Supplement) must be sent to the MSS Task Force secretariat (tmb@iso.org) for approval
before the NWIP ballot can be launched.
Indication(s) of the preferred type or types of deliverable(s) to be produced under theproposal.
☐ Technical Specification☒ International Standard☐ Publicly Available Specification☐ Technical Report

Proposed development track☐ 1 (24 months)☒ 2 (36 months - default)☐ 3 (48 months)

Note: Good project management is essential to meeting deadlines. A committee may be
granted only one extension of up to 9 months for the total project duration (to beapproved by the ISO/TMB).
Known patented items (see ISO/IEC Directives, Part 1 for important guidance)☐ Yes ☒ No
If "Yes", provide full information as annex
Co-ordination of work: To the best of your knowledge, has this or a similar proposal been
submitted to another standards development organization?
☐ Yes ☒ No
If “Yes”, please specify which one(s):Click here to enter text.

FORM 4 – New work item proposal
Version 01/2016

A statement from the proposer as to how the proposed work may relate to or impact on
existing work, especially existing ISO and IEC deliverables. The proposer should
explain how the work differs from apparently similar work, or explain how duplicationand conflict will be minimized.
The proposed item has no duplication or conflicts with exist ing work. The proposed item will
improve the consensus on green financial activities among different areas of energy,environment and finance. It will not duplicate deliveries of related technical committees but
facilitate users to adopt best available international standards in thos e areas. It will also
provide opportunities for relevant technical committees to be aware of emerging needs forstandardization. Especially, it will increase effective implementation of relevant ISO deliveries
such as ISO 14000 series, ISO 10845 series, ISO 50001 series and ISO 52000 series infinancial sector.
ISO/TC 207/SC 7 is developing ISO 14097 on the Framework and principles for assessing
and reporting investments and financing activities related to climate change. Although it
focuses on the climate related investment of organization, this proposed item is distinct fromthat standard as it will be applicable at project level. Additionally, green finance is more
extensive than climate finance as it covers sectors such as renewable energy, sustainableconstruction, energy efficiency and waste management.
ISO/TC 207/SC 1 is developing ISO 14007 Environmental management: Determining
environmental costs and benefits – Guidance and ISO 14008 Monetary valuation ofenvironmental impacts and related environmental aspects — Principles, requirements andguidelines. This proposed item will not touch upon the evaluation of environmental costs andbenefits or monetary valuation of environmental impacts and related environmental aspects .
The proposed item will refer to these available ISO standards but will not develop technicalapproaches.

FORM 4 – New work item proposal
Version 01/2016

A listing of relevant existing documents at the international, regional and nationallevels.
ISOISO 10006:2003 Quality management systems -- Guidelines for quality management inprojects
ISO 10845-1:2010 Construction procurement -- Part 1: Processes, methods and procedures
ISO 13065:2015 Sustainability criteria for bioenergy
ISO 14001:2015 Environmental management systems -- Requirements with guidance for use
ISO 14064-2:2006 Greenhouse gases -- Part 2: Specification with guidance at the projectlevel for quantification, monitoring and reporting of greenhouse gas emission reductions or
removal enhancements
ISO 16075-1:2015 Guidelines for treated wastewater use for irrigation projects -- Part 1: The
basis of a reuse project for irrigation
ISO 16075-2:2015 Guidelines for treated wastewater use for irrigation projects -- Part 2:Development of the project
ISO 16075-3:2015 Guidelines for treated wastewater use for irrigation projects -- Part 3:
Components of a reuse project for irrigation
ISO 17741:2016 General technical rules for measurement, calculation and verification ofenergy savings of projects
ISO 20121:2012 Event sustainability management systems -- Requirements with guidance foruseISO 21500:2012 Guidance on project managem ent
ISO 50001:2011 Energy management systems -- Requirements with guidance for use
Climate Bonds Initiative (CBI)Climate bonds standard and sector specific standards for water, solar, wind, low carbon
buildings, geothermal and low carbon transport
Equator Principles (EP) Association
The Equator Principles
G20 Energy Efficiency Finance Task Group
Energy Efficiency Investment Toolkit
International Capital Market Association (ICMA)
Green Bond Principles
International Finance Corporation (IFC)
Performance Standards on Environmental and Social Sustainability

FORM 4 – New work item proposal
Version 01/2016

Please fill out the relevant parts of the table below to identify relevant affectedstakeholder categories and how they will each benefit from or be impacted by theproposed deliverable(s).
Benefits/impacts
Industry and commerce –large industry

Industry and commerce –SMEs

Government

Financial institute will improve
investment on reliable green
financial projects and reduce
the risks; Large industry andcommerce companies will
investment more on energy
saving and environmental
technology
Business opportunity for newservices and more incentives
for R&D of green technology

Non-governmentalorganizations

Government can promote thegreen finance on a common
technical basis. It will help
government to design policy
and regulations to achieveenergy and environmental
target through green finance.
More efficient andenvironmental
products/services
More development opportunity
in new and green business
Incentives for R&D on energy
saving and environmental
technology
New business for certificationand verification of green
financial projects
Better technical basis topromote green finance

Other (please specify)

Click here to enter text.

Consumers

LabourAcademic and researchbodiesStandards application
businesses

FORM 4 – New work item proposal
Version 01/2016

Examples oforganizations/companies tobe contacted
Banks, institutional investors,
assurance companies, bondissuers, green technology
companies, renewable energy
operators

Energy Service Companies(ESCos), environmentalprotection consulting firms, thethird-party assessors
Regulators for financial
institutes, regulators forresource and environment

Consumer associations

Labour organization
University, Research Institutes

Certification bodies

NGOs for environment, UNEP,IPEEC
Click here to enter text.

Liaisons:

Joint/parallel work:

A listing of relevant externalinternational organizations or internalparties (other ISO and/or IECcommittees) to be engaged as liaisons in
the development of the deliverable(s).

Possible joint/parallel work with:

External:
Climate Bonds Initiative (CBI)
Equator Principles (EP) Association
International Capital Market Association(ICMA)☐ IEC (please specify committee ID)

Click here to enter text.
☐ CEN (please specify committee ID)

Click here to enter text.
☐ Other (please specify)

Click here to enter text.

Internal:
ISO/TC 28/SC 7 Liquid biofuels
ISO/TC 59/SC 18 Construction
procurement
ISO/TC 68 Financial services
ISO/TC 163/TC205/JWG 4 Energy
performance of buildings using holistic
approach
ISO/TC 180 Solar energy
ISO/TC 207 Environmental management
ISO/TC 228 Tourism and related
services
ISO/TC 238 Solid biofuels
ISO/TC 255 Biogas
ISO/TC 258 Project, programme andportfolio management
ISO/TC 282 Water reuse
ISO/PC 295 Audit data collection
ISO/TC 301 Energy management andenergy savings
ISO/PC 305 Sustainable non-sewered
sanitation systems
A listing of relevant countries which are not already P-members of the committee.

Click here to enter text.
Note: The committee secretary shall distribute this NWIP to the countries listed above to see
if they wish to participate in this work
Proposed Project Leader (name ande-mail address)

Name of the Proposer(include contact information)

Li Pengcheng, China National Instituteof Standardization

Li Yubinglipch@cnis.gov.cn

Department of International Cooperation,Click here to enter text.

SAC

FORM 4 – New work item proposal
Version 01/2016

Director General,This proposal will be developed by:☐ An existing Working Group (please specify which one: Click here to enter text.)☐ A new Working Group (title: Click here to enter text.)(Note: establishment of a new WG must be approved by committee resolution)☒ The TC/SC directly☐ To be determined
Supplementary information relating to the proposal☒ This proposal relates to a new ISO document;☐ This proposal relates to the adoption as an active project of an item currently registeredas a Preliminary Work Item;☐ This proposal relates to the re-establishment of a cancelled project as an active project.
Other:

Click here to enter text.
☒ Annex(es) are included with this proposal (give details)
Annex A. Outline of Green Finance: Assessment of Green Financial Projects

Annex B. Analysis of the scopes of the proposed new working item and relevant TCs/SCs

Additional information/questions
NOTE from ISO/CS:
ISO/CS would like to draw the attention of the ISO members to the fact that TC 207 projects
cover ‘Climate finance’ and that this proposal could therefore lead to a potential overlap.
If the NWIP is approved by ISO members, ISO/CS would recommend to the ISO/TMB that
this proposal is developed under a new WG in ISO/TC 207.

FORM 4 – New work item proposal
Version 01/2016

ANNEX A. Outline of Green Finance: Assessment of Green Financial Projects

1. Scope
This International Standard specifies classification of green financial projects. ThisInternational Standard also specifies a framework for assessing green financial
projects, including principles, scope, methodologies, procedure, reporting, andassessment bodies.
This International Standard helps users to identify and assess the green financial
projects.
2. Terms and conditions
3. Classification of green financial projects
3.1 Principles of classification
3.2 Hierarchical classification
3.2.1 Energy efficiency project3.2.2 Renewable energy project3.2.3 Pollution reduction project3.2.4 Resource saving project3.2.5 Others
4. Principles of assessment
5. Scope of assessment
5.1 Compliance
5.2 Resource and Environmental Benefits
5.3 Control of Risks
5.4 Management Arrangement
5.5 Information Disclosure
5.6 Verification Arrangement
6 Methodology of Assessment
6.1 Standard Control
6.2 Comparison Test
6.3 Peer Review7 Procedure of Assessment

8 Reporting
9 Assessment Bodies

ANNEX B. Analysis of the scopes of the proposed new working item and relevant
TCs/SCs

We have investigated the scopes and business plans of relevant TCs/SCs in ISO as listed in table
1.
Table 1. The scopes of relevant TCs/SCs
TC

Scope

ISO/TC 68

Standardization in the field of banking, securities and other financialservices.

ISO/TC 207

Standardization in the field of environmental management systems
and tools in support of sustainable development.
Excluded:•test methods of pollutants, setting limit values and levels ofenvironmental performance, and standardization of products.
Note:
The TC for environmental management will have close cooperation
with ISO/TC 176 in the field of environmental systems and audits.

ISO/TC 207/SC 1
Environmental
management systems

Standardization in the field of environmental management systems
to support the achievement of sustainability.

ISO/TC 207/SC 2
Environmental auditing
and related environmental
investigations

Standardization in the field of environmental auditing and related
environmental investigations.

ISO/TC 207/SC 4
Environmental
performance evaluation

Standardization in the field of environmental performance
evaluation in support of sustainability.

ISO/TC 207/SC 7
Greenhouse gas
management and relatedactivities

Standardization related to the management of greenhouse gas
emissions and removals and related activities.

ISO/TC 301

Standardization in the field of energy management and energysavings.

1

Green financial mechanism

Areas of projects

Green loan

Pollution reduction

Green bondRenewable energy

Green fundGreen financial projects

Green insurance

Energy savings
Water conservation

Environmental exchange

Assessment......

......
Implementation

Verification
Information
Disclosure

Figure 1. Context of green financial projects assessment
According to the analysis, we think the proposed item brings forward an emerging topic which
doesn’t fall in the scope of existed TCs. Firstly, the scope of the proposed item is beyond thescope of environmental management system or tools standard. The assessment framework ofgreen financial projects has very loose connection with environmental management,environmental audit or environmental performance. The scopes of relevant TCs are defined so it isdifficult to cover the broad theme of green finance. Secondly, the proposed standard will not touch
the specific environmental issue, energy saving issue or financial service as its main purpose is toharmonize conception and guidelines for internal/external bodies assessing green financial
projects before investment decision. It will consider the broader context of pollution reduction,
GHG emission reduction, energy efficiency improvement, renewable resources utilization andtheir co-benefits.
Therefore, we think it is logical to develop the standard in a project committee. We also think thisis an efficient and effective way especially when market demand grows rapidly.

2