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 raised USD 6.4 billion equivalent in Green Bonds through 68 transactions and 17 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
- 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
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 ("Mitigation Projects"), or (b) adaptation to climate change, including investments in climate-resilient growth "Adaptation Projects").
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, as determined by IBRD.
MITIGATION See examples of eligible projects
ADAPTATION See examples of eligible projects
World Bank Green Bond Symposium - November 2013
The World Bank Treasury hosted a Green Bond Symposium in Washington, D.C. on November 19, 2013, to convene a group of investors, issuers and intermediaries so they could share perspectives of the evolving green bond market. The agenda of the discussion is available at: Green Bond Symposium
Green Bond Press Releases
Climate and Green Bonds in World Bank news
Videos and Publications about World Bank Green Bonds
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