CICERO - Center for International Climate Research
NO
Meny
TOPICS
Energy Food and forests Climate finance Local Solutions China The Arctic ​International Climate Policy
Green bonds are increasingly used for low-carbon investments and climate-proofing of cities. Photo: bishan valley, SINGAPORE, flickr - stefan.

Green bonds are increasingly used for low-carbon investments and climate-proofing of cities. Photo: bishan valley, SINGAPORE, flickr - stefan.

How to raise environmental integrity of green bonds?

News - News from CICERO

Published 11.05.2016

A new report from CICERO shares insights from experience in producing over 60 second opinions. 

As the green bond market has evolved to include corporate issuers, our second opinions have also evolved to pay more attention to governance, giving investors greater confidence in the environmental integrity.

CHRISTA CLAPP, head of climate finance

CICERO is the leading global second opinion provider, producing 70% of the second opinions in the market to date. 

Best practice is emerging for certain project types:

  • Issuers are more often incorporating life cycle analysis to understand the full environmental impact of the projects they finance, e.g. in renewable energy projects, as well as of their corporate activities including supply chains and subcontractors.
  • Sustainable buildings are more likely to include an energy efficiency target in addition to building certifications.
  • Multilateral development banks and municipalities are more likely to include adaptation components in their green bonds.
  • In some cases, environmental experts are gaining veto power in the project selection process.
  • Regular reporting on green bond projects is becoming the norm, with increasing interest in working towards impact reporting.

Moreover, our climate finance experts conclude that management that is aligned for climate risk can give greater confidence in a green bond. Internal dialogue with environmental experts can benefit from issuing a green bond and obtaining a second opinion.

Read more in the report Green bonds and environmental integrity: insights from CICERO Second Opinions.