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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 raised over USD 7 billion equivalent in Green Bonds through 76 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

 

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 ("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


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


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.

   

 

 

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