Green Bonds Policy: Highlights from Q1-Q2 2018

The document details the growth of sovereign green bonds, the introduction of national guidelines in Latin America, and the implementation of targeted incentives in Hong Kong. It also covers the European Commission's progress on a sustainable finance taxonomy, Luxembourg's pioneering law for renewable energy covered bonds, and the increasing role of central banks, such as the People's Bank of China, in integrating green assets into financial stability frameworks.

• Sovereign green bond issuance grew in the first half of 2018, with Poland issuing EUR 1bn in February for energy, transport, and land use, and Belgium issuing EUR 4.5bn in February, primarily for rail (85%). Indonesia launched the first sovereign green sukuk in February for USD 1.25bn, and Lithuania became the first Baltic country to issue a sovereign green bond in May for EUR 20m.
• New national green bond guidelines were launched in Latin America in 2018. Peru's Lima Stock Exchange published a Green Bonds Guide in March emphasizing third-party verification, and Chile launched a "Green and Social Bond Segment" and related Guidelines in April aligned with the Climate Bond Standard and Green Bond Principles.
• Governments are using targeted financial incentives to lower entry barriers for green bond issuers. Hong Kong introduced a three-year "Green Bond Grant Scheme" providing subsidies up to HKD 800,000 to offset external review costs for bonds at least HKD 500m in size.
• The European Commission is developing a comprehensive sustainable finance framework. A Technical Expert Group (TEG) is working on an EU taxonomy for sustainable finance, with the climate mitigation component expected in Q1 2019 and adaptation/environmental assets in Q2 2019, followed by an EU green bonds label in Q3 2019.
• Luxembourg enacted a law on July 1, 2018, creating a legal framework for Renewable Energy Covered Bonds (RECB), making it the first law globally to allow renewable energy assets—including wind, solar, and geothermal—into cover pools.
• Central banks are integrating green finance into stability and liquidity mechanisms. The People's Bank of China (PBoC) accepts green bonds and loans as collateral for its Medium-Term Lending Facility and includes green credit in its Macro-Prudential Assessment (MPA) scoring system.
• Several countries are conducting high-level consultations to establish green finance strategies. Sweden's Green Bond Investigation Commission recommended sovereign issuance and transaction cost incentives in January 2018, and the UK's Green Finance Taskforce recommended a sovereign green bond and the creation of the Green Finance Institute in London.

APA

Climate Bonds Initiative (2018). Green Bonds Policy: Highlights from Q1-Q2 2018. https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q1-Q2-2018.pdf

Chicago

Climate Bonds Initiative. Green Bonds Policy: Highlights from Q1-Q2 2018. 2018. https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q1-Q2-2018.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Green Bonds Policy: Highlights from Q1-Q2 2018 |date=July 2018 |url=https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q1-Q2-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018green, author = {{Climate Bonds Initiative}}, title = {{Green Bonds Policy: Highlights from Q1-Q2 2018}}, institution = {Climate Bonds Initiative}, year = {2018}, month = jul, url = {https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q1-Q2-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }