- Reduced or no pollution of land, water or air
- Reduction in carbon emission
- Conservation of natural resources
- What are the examples of Qualifying or Eligible Green Projects?
|1.||Renewable energy||solar, wind, hydropower|
|2.||Energy efficiency||efficient buildings, energy management|
|3.||Sustainable waste management||pollution prevention and control|
|4.||Sustainable land use||forestry, agriculture and aquaculture|
|5.||Conservation||biodiversity and natural ecosystems|
|6.||Clean transportation||rail, mass transit system, Bus Rapid Transit (BRT) schemes|
|7.||Sustainable water management||water treatment plants, water distribution infrastructure, water capture and storage infrastructure|
- How is the Green Label determined?
- Green Bond Principles – Voluntary guidelines on process for labelling green bonds.
- Climate Bond Standards and Certification– Certification label for Green Bonds that provides assurance on due diligence against the Green Bond Principles and the “greenness” of the bond portfolio. It is a third party verification process.
- Instruments to assess process for Green Bond labelling such as “Second Opinions”, Green Ratings (e.g. Moody’s Green Rating) and Green Bond Indices.
- How are Green Bonds different from regular bonds?
- How do financial characteristics of Green Bonds compare with regular bonds?
- How are Green Bonds priced?
- Are Green Bonds used to finance only new projects?
- How is the use of proceeds and impact of Green Projects monitored?
- External review
- Annual reporting
- Can investment in Green Projects be profitable?
- What are Green Bond Principles?
- Who issues the National Green Bond Guidelines and Principles in Nigeria?
- How are Green Bonds certified?
- Pre-Issuance: the period when the bond is formulated, confirmed, launched, registered, priced and marketed
- Post-Issuance: the period from issuance of the bond through to allocation of the net proceeds to eligible projects & assets, and then ongoing for the term of the bond.
- The projects & assets to be financed by the bond proceeds are eligible under the Climate Bond Standards, and
- The Issuer has established internal processes and controls to keep track of how the bond proceeds are used and produce annual reports.
- How are Green Bonds rated?
- Who can issue Green Bonds?
- What are the forms of Green Bonds?
- Corporate Green Bonds: These are issued by corporate entities.
- Project Bonds: These are issued to fund specific projects.
- Financial Sector Bonds: These are issued by financial institutions to specifically raise capital to provide loans to green projects or activities.
- Asset-Backed Security (ABS) Green Bonds: These are issued for specific projects and are collateralised by one or more of the projects.
- Supranational, Sub-sovereign and Agency Green Bonds: These are issued by International Financial Institutions (IFIs) such as the World Bank and the European Investment Bank and Sovereign National Development banks.
- Subnational or Municipal Bonds: These are issued by municipal governments, regional governments, State government or cities.
- Sovereign Bond: These are issued by a national government.
- What are the benefits of Green Bonds?
- Access to capital for sustainable development projects
- Access to new global investors who invest in green ventures.
- Positive publicity.
- Leadership and branding opportunity.
- Investors can balance risk-adjusted financial returns with environmental benefits.
- Green Bonds satisfy Environment, Social and Governance (ESG) requirements and green investment mandates.
- Green Bonds improve risk assessment in an otherwise opaque fixed income markets through use of proceeds reporting.
- Financial Market
- Green Bonds enhance the reputation of institutions that offer Green Bonds and also promote interests in investments that deliver sustainable development
- Green Bonds attract investors from outside the traditional universe of domestic financial market participants.
- Green Bonds foster a greater level of transparency and institutional accountability in the delivery of sustainable development.
- What are the possible risks of investing in Green Bonds?
- When did the concept of Green Bonds start?
- What has been the growth and composition of the Green Bond market?
- Who buys Green Bonds?
- What are issuance-sizes for Green Bonds?
- What are Green Bond maturities?
- How vast is the coverage of the Green Bonds market?
- Who has issued Green Bonds?
- Commercial Banks: IDBI Bank, Axis Bank, Yes Bank, Dutch bank ABN Amro, etc.
- Corporate: Apple, Toyota, Hyundai Capital Services, and Iberdrola etc.
- Asset-Backed Security (ABS): FlexiGroup Ltd, Toyota Financial Services, Citi and Renew Financial etc.
- Subnational, Municipal: The City of Johannesburg, Province of Ontario, Canada and State of Victoria, Australia, The Commonwealth of Massachusetts etc.
- Development Banks: The World Bank, The African Development Bank (AFDB), The European Investment Bank, The International Finance Corporation etc.
- Sovereign: Poland, France.
- What are the Past Sovereign Green Bond Issuance?
- How remarkable is Nigeria’s debut Green Bond initiative?
- Can Green Bonds be Listed and Traded?
- Will the proposed Nigerian Green Bond be subject to tax?
- Do we have an enabling environment for Green Bonds in Nigeria?
- 30. How do investors subscribe to the Green Bonds?