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About World Bank Green Bonds


Climate change affects all of us. But it is expected to hit developing countries the hardest. Its potential effects on temperatures, precipitation patterns, sea levels, and frequency of weather-related disasters pose risks for agriculture, food, and water supplies. At stake are recent gains in the fight against poverty, hunger and disease, and the lives and livelihoods of people in developing countries.

Tackling this immense challenge must involve both mitigation—to avoid the unmanageable—and adaptation—to manage the unavoidable—all while maintaining a focus on its social dimensions.

Addressing climate change requires unprecedented global cooperation across borders. The World Bank Group is helping support developing countries and contributing to a global solution, while tailoring our approach to the differing needs of developing country partners. We are strengthening and building climate change partnerships with our member governments and a wide array of organizations.

In 2008, the World Bank launched the "Strategic Framework for Development and Climate Change" to help stimulate and coordinate public and private sector activity to combat climate change. The World Bank Green Bonds is an example of the kind of innovation the World Bank is trying to encourage within this framework.

The World Bank Green Bond raises funds from fixed income investors to support World Bank lending for eligible projects that seek to mitigate climate change or help affected people adapt to it. The product was designed in partnership with Skandinaviska Enskilda Banken (SEB) to respond to specific investor demand for a triple-A rated fixed income product that supports projects that address the climate challenge. Since 2008, the World Bank has now issued around USD 8 billion equivalent in Green Bonds through over 90 transactions in 18 currencies.

World Bank Green Bonds are an opportunity to invest in climate solutions through a high quality credit fixed income product.
  • The triple-A credit quality of the Green Bonds is the same as for any other World Bank bonds.
  • Positive environmental returns by supporting World Bank projects addressing mitigation and adaptation solutions for climate change

 

Implementation Guidelines
- Five Key Elements of the World Bank Green Bond Process -


I. Project selection criteria: how the World Bank defines "green"
The World Bank’s Green Bond program supports the transition to low-carbon and climate resilient development and growth in client countries. >More
II. Selecting projects that are eligible for financing by World Bank Green Bond process
World Bank green projects, like all World Bank projects, are designed to reduce poverty and improve local economies. But green projects specifically focus on tackling climate change issues that directly impact developing countries. > More
III. Earmarking and allocating World Bank Green Bond proceeds
The graph below illustrates the Green Bond selection process including earmarking and allocating the World Bank’s Green Bond proceeds. > More
IV. Monitoring and reporting on impact of supported project
The World Bank supervises the implementation of all projects it supports –including the Green Bond Projects. Client countries implement the development projects in accordance with the project loan agreement. > More
V. Ensuring compliance
Projects: Projects eligible under the Green Bond program comply with World Bank safeguards, procurement policies and other procedures addressing project integrity. > More


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 no representation, 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 and information relating to IBRD securities.  Any such information is provided only for general informational purposes and does not constitute an offer to sell or a solicitation 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.

World Bank Green Projects

World Bank Green Bonds support projects selected by World Bank environment and other sector specialists that meet specific criteria for development activities that help lower global carbon emissions. World Bank green projects, like all World Bank projects, are designed to reduce poverty and improve local economies. But they specifically focus on tackling climate change issues that directly impact developing countries.

Eligible Projects may include projects that target (a) mitigation of climate change including investments in low-carbon and clean technology programs, such as energy efficiency and renewable energy programs and projects, or (b) adaptation to climate change, including investments in climate-resilient growth.

The following list are “green” projects which are funded in whole or in part, by World Bank Green Bonds. These projects promote the transition to low-carbon and climate resilient growth in the recipient country across a range of sectors, as determined by IBRD.

I. Renewable Energy and Energy Efficiency
. > See sample of eligible projects
II. Transport
. > See sample of eligible projects
III. Water, Wastewater, and Solid Waste Management
. > See sample of eligible projects
IV. Agriculture, Land Use and Forestry
. > See sample of eligible projects
V. Resilient Infrastructure, Built Environment and Other
. > See sample of eligible projects

Working Towards a Harmonized Framework for Impact Reporting

Based on green bond market participants' interest in impact reporting and the positive influence that higher transparency and comparability in this area may have for the green bond market, the World Bank collaborated with the African Development Bank (AfDB), the European Investment Bank (EIB), and the International Finance Corporation (IFC) to discuss green bond impact reporting.

The conclusions have been summarized and are available to download here in order to share information and support discussions with other issuers and investors and provide a reference for other green bond issuers as they set up their own impact reporting. 



Green Bond Press Releases

02/19/2015
02/17/2015
01/29/2015
01/08/2015
10/22/2014
09/29/2014
09/23/2014
09/18/2014
09/17/2014
08/20/2014
07/23/2014
06/12/2014
05/14/2014
04/16/2014
03/13/2014
01/14/2014
08/09/2013
10/23/2012
09/14/2012
03/01/2012
12/15/2011
07/13/2011
06/08/2011
11/16/2010
09/01/2010
07/02/2010
06/08/2010
02/23/2010
02/22/2010
01/18/2010
12/03/2009
04/24/2009
11/14/2008
11/06/2008

 

List of Select Green Bond Investors
Aberdeen Asset Management
MISTRA

ACTIAM (Formerly SNS AM)

Natixis Asset Management

Adlerbert Research Foundation New York Common Retirement Fund
Aegon Asset Management Nikko Asset Management
AMP Capital Pax World Balanced Fund

AP2 / AP3 – Swedish National Pension Funds

Pictet
Australia Local Government Super QBE Insurance Group Ltd

Australian Ethical Investment Ltd

Rathbone Greenbank

Barclays Treasury

Sarasin

BlackRock

SEB Ethos rantefund / SEB Fonden / SEB TryggLiv

Breckinridge Capital Advsiors Skandia Liv
Caisse Centrale de Reassurance Sonen
California State Treasurer’s Office Standish Mellon Asset Management

CalSTRS

State Street Global Advisors
Calvert Investments

TIAA-CREF

Church of Sweden

Trillium Asset Management

Colonial First State Global AM UN Joint Staff Pension Fund

Deutsche Asset & WealthManagement

UniSuper
Everence Financial

WWF-Sweden

FMO (Netherlands Dev. Fin.)

ZKB (Zürcher Kantonalbank)

Ikea Group Zurich Insurance
LF Liv

Zwitserleven

Mirova  

 

 


Climate and Green Bonds in World Bank news


 


Videos and Publications about World Bank Green Bonds

 

  VIDEOS

  PUBLICATIONS


Overview of the World Bank (IBRD) Green Bond.
An overview about the World Bank Green Bond
and examples of the types of projects it helps support.
Euromoney Handbook 2010

Euromoney Environmental Finance Handbook 2010
"Green bonds: a model to mobilise private capital to fund
climate change mitigation and adaptation projects"

Canada's Business News Network (BNN) interviewed Heike Reichelt of the World Bank.
Heike provided the issuer's perspective of green bonds.


Pension Fund Service Local Government
"Getting to Know the Green Bond Market"
   

 

 

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