CLIMATE BONDS INITIATIVE AND FC4S EUROPE LAUNCH BRIEFING PAPER ON EUROPEAN GREEN BOND MARKET DEVELOPMENT
Green Bonds as a tool to develop green financial centres
London, 05 March 2019 – Climate Bonds Initiative and the UN Environment Financial Centres for Sustainability (FC4S) Network today release "Green Bonds – a key tool for financial centre competitiveness: Lessons from Europe" Briefing Paper. Analysing the recent experience of European financial centres around green bonds growth, this briefing paper provides insights on how green finance can be leveraged as a core pillar of sustainable financial centres.
Supported by EU EIT Climate-KIC, this paper was developed as part of the UN Environment FC4S Network regional European platform.
Europe hosts several financial centres that together form the largest regional green bond market with a cumulative USD184.2bn worth of green bonds issued to date, with France leading issuance, followed by Germany, Netherlands, Sweden and Spain.
The Paper devotes an extensive section to in-country experiences around green finance instruments, with the objective to bring clarity and convergence on definitions, taxonomies and classification system. It also identifies building skills and capacity through peer exchange as strategic action points for the FC4S Network.
The paper notes various sustainable finance initiatives already undertaken by European financial centres and makes recommendations for financial centre authorities to foster the development of green bond markets as an integral part of the sustainable finance planning including:
Supporting the development of guidance for green financial instruments;
Developing new market infrastructure;
Implementing best practice on disclosure around sustainable investments.
Stephen Nolan, Managing Director of UN Environment FC4S:
“As we relentlessly work to accelerate the growth of green and sustainable finance at a financial centre level, the publication of today’s report is to be welcomed. Providing a strong roadmap for further action, the UN Environment FC4S European platform looks forward to working with the Climate Bonds Initiative, our European located partners and EU EIT Climate-KIC to realise these important recommendations.”
Sara Lovisolo, Co-chair, Italian Financial Centre for Sustainability, Italian Observatory on Sustainable Finance (OIFS):
“Sustainable financial centres, as platforms for collaboration, can bring additionality to green bond markets by removing barriers to issuance in green format and creating a strong link between financial markets and public policy targets. We welcome the recommendations of this report, which align with the mission of the Italian Observatory on Sustainable Finance.”
Sean Kidney, CEO of Climate Bonds Initiative:
“The sustainable finance centres of the future will include large green bond segments and be hubs for green investment markets and innovation around climate finance. The report’s recommendations provide a basis for European financial centres making this much needed shift and reflects the significant role of the UN Environment FC4S Network in facilitating this process.”
Notes for Journalists
About the "Green Bonds – a key tool for financial centre competitiveness: Lessons from Europe" Briefing Paper: The document can be downloaded here.
About Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. It undertakes advocacy and outreach to inform and stimulate green bond markets, provides policy models and government advice, international development programs, market data and analysis and administers the Standards & Certification Scheme. For more information, please visit .
About UN Environment FC4S Network: Launched in 2018, the Financial Centres for Sustainability (FC4S) Network is structured as a partnership between international financial centres and the UN Environment Programme, which acts as its Convenor and Secretariat. The objective of the Network is to exchange experiences and take common action on shared priorities to accelerate the expansion of green and sustainable finance. Today the Network has 22 financial centres members across Asia, Europe, North America, the Gulf and Africa. For more information, please visit www.fc4s.org.
Climate Bonds UN Environment FC4S Network
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