Financing low-carbon buildings and energy efficiency in the green bond market

The document examines the global green bond market for low-carbon buildings, highlighting the role of securitisations, covered bonds, and public infrastructure financing. It identifies Japan as a key player with significant potential to leverage these instruments for energy efficiency and climate adaptation.

• As of the end of November 2018, USD 126 billion had been allocated to low-carbon buildings assets and projects within the green bond market.
• Asset-backed securities (ABS) and mortgage-backed securities (MBS) represent a significant portion of the market, with ABS issuance specifically allocated to buildings reaching USD 40 billion.
• Financial corporates, particularly mortgage banks and property lenders, have allocated USD 24.2 billion for low-carbon buildings. In Europe, covered bonds have become a key funding option due to their dual recourse structure and superior credit ratings.
• Public sector entities have allocated USD 11.8 billion to buildings, focusing on infrastructure such as universities, schools, and hospitals. In the US, local governments and agency issuers have allocated over USD 5 billion to buildings.
• The US PACE (Property Assessed Clean Energy) programme, which targets energy and water efficiency, has seen ABS issuance amounting to USD 5.3 billion.
• In Japan, the green bond market reached USD 9.2 billion by the end of November 2018, with approximately one-third (around USD 3 billion) allocated to low-carbon buildings.
• The Development Bank of Japan is the largest issuer in the Japanese building sector, allocating nearly USD 2.2 billion across four green bonds for buildings with a DBJ Green Building Certification of at least 3 stars.

APA

Climate Bonds Initiative (2019). Financing low-carbon buildings and energy efficiency in the green bond market. https://www.climatebonds.net/files/documents/publications/cbi_gb_lcb_briefing_31012019.pdf

Chicago

Climate Bonds Initiative. Financing low-carbon buildings and energy efficiency in the green bond market. 2019. https://www.climatebonds.net/files/documents/publications/cbi_gb_lcb_briefing_31012019.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Financing low-carbon buildings and energy efficiency in the green bond market |date=January 2019 |url=https://www.climatebonds.net/files/documents/publications/cbi_gb_lcb_briefing_31012019.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019financing, author = {{Climate Bonds Initiative}}, title = {{Financing low-carbon buildings and energy efficiency in the green bond market}}, institution = {Climate Bonds Initiative}, year = {2019}, month = jan, url = {https://www.climatebonds.net/files/documents/publications/cbi_gb_lcb_briefing_31012019.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }