The Climate Bonds Initiative announced the count down to the world’s first Climate Bond issuance – worth ¼ billion US dollars – with the release of the draft Compliance Standards today that will assure the environmental integrity of bonds issued to fund low carbon projects. The first version of the Standard will apply to wind energy.
The Climate Bond Initiative’s Standards break new ground by providing independently verified assurance to institutional investors that the proceeds of such bonds are being used to build the low carbon economy, and will not be diverted for other purposes.
The Climate Bonds Initiative also announced that the first wind energy Standard-compliant Climate Bond issuance of over a quarter of a billion dollars is being prepared for release and is expected to be launched in May this year.
The Climate Bond Standard was announced at the European Wind Energy Association (EWEA) Conference in Brussels today and the Climate Bonds Initiative is now seeking public and industry comment on the draft Standard for bonds used to finance wind energy projects with the objective of finalising the standard by the end of April.
The Climate Bonds Initiative brings together some of the world’s largest financial institutions together with experts advising the development of the Standards from climate change and clean technology industries and respected environmental groups.
“The issuance of certified Climate Bonds that meet strict environmental standards will make it simpler to invest in the low carbon economy with confidence,” said Climate Bonds Initiative Chair Sean Kidney. “A certifiable Standard that applies across different types of low-carbon investments will increase investor confidence and deepen the pool of capital allocated to investments that address climate change.”
