Green Bonds Policy: Highlights from Q1-Q2 2018

This briefing by the Climate Bonds Initiative outlines key public sector green bond policy developments from the first half of 2018, focusing on sovereign issuance, national guidelines, financial incentives, and the role of central banks in supporting the energy transition.

• Sovereign green bond issuance grew in the first half of 2018. Poland issued a second green bond in February for EUR 1bn (USD 1.2bn) for energy, transport, and land use. Indonesia issued the first sovereign green sukuk for USD 1.25bn in February. Belgium issued a EUR 4.5bn (USD 5.5bn) bond in February, allocating 85% of proceeds to rail. Lithuania became the first Baltic country to issue a sovereign green bond in April for EUR 20m (USD 25m). France increased its total green OAT issuance to EUR 14.8bn after a EUR 4bn tap in June 2018.
• Several Latin American countries launched national green bond guidelines in early 2018. Peru's Lima Stock Exchange (BVL) published a Green Bonds Guide in March, emphasizing third-party verification. Chile launched a "Green and Social Bond Segment" and related Guidelines in April, aligning with the Climate Bond Standard and other international principles.
• Governments are using targeted 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 (USD 102,000) for external reviews for bonds at least HKD 500m (USD 63.7m) in size.
• The European Commission is developing a comprehensive sustainable finance framework. In March 2018, it announced an Action Plan, followed by the June launch of a Technical Expert Group (TEG). The TEG is tasked with creating an EU taxonomy for sustainable finance (with climate mitigation due Q1 2019 and adaptation due Q2 2019) and an EU green bond label planned for Q3 2019.
• Luxembourg enacted the first law globally allowing renewable energy assets to be included in covered bond cover pools. The Renewable Energy Covered Bonds (RECB) draft bill, published in January 2018, entered into force on July 1st. Eligible assets include wind, solar, geothermal, and biomass, among others, based on EU Directive 2009/28.
• Central banks are integrating green finance into their operations to manage climate risks. The People’s Bank of China (PBoC) now accepts green bonds and loans as collateral for its Medium-Term Lending Facility (MLF) and includes green credit in its Macro-Prudential Assessment (MPA) scoring system. Additionally, the Network for Greening the Financial System (NGFS) held its first meeting in January 2018 to focus on supervision, macrofinancial issues, and mainstreaming green finance.
• Various governments have initiated consultations to establish green finance strategies. Sweden's Green Bond Investigation Commission published a report in January 2018 recommending sovereign issuance and incentives. The UK's Green Finance Taskforce recommended a sovereign green bond and the government subsequently launched the Green Finance Institute (GFI) in London in June 2018. Canada established an Expert Panel on Sustainable Finance to consult the business community.

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} }