Green Bonds Policy: Highlights from Q1-Q2 2018

The document reports on the growth of sovereign green bond issuance in 2018, noting that sovereign issuance reached 10.5% of the green bond market share. It details specific issuances from countries like France, Indonesia, and the Seychelles, and outlines the development of the Green Bond Market Development Toolkit for emerging markets. Additionally, it describes the EU's progress toward a sustainable finance taxonomy and the efforts of central banks, such as the Bank of England and De Nederlandsche Bank, to integrate climate risk into financial supervision and stress testing.

• Sovereign green bond issuance grew to represent 10.5% of the total green bond market share by the end of 2018. Notable activities included France issuing EUR5.1bn under its green OAT, Indonesia issuing the first sovereign green sukuk for USD1.25bn, and Poland becoming the first sovereign repeat issuer with a EUR1bn (USD1.25bn) bond.
• The Republic of Seychelles issued the world's first sovereign blue bond in October 2018 for USD15m to support sustainable marine and fisheries projects, supported by a USD5m World Bank guarantee and a USD5m GEF concessional loan.
• Several countries announced plans for sovereign green bonds in 2019, including Kenya (targeting manufacturing, transport, and agriculture sectors with USD853m in investments over 10 years), the Netherlands (between EUR3.5bn and EUR5bn), Spain, and Vietnam.
• The Climate Bonds Initiative, IFC, and Sustainable Banking Network developed the Green Bond Market Development Toolkit to help emerging markets evaluate capital market development across four pillars: market infrastructure, guidance, issuance, and capacity building. In the second half of 2018, Egypt and the Philippines published national green bond guidelines.
• The European Commission is developing an EU Taxonomy for Sustainable Finance based on six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection of healthy ecosystems.
• Central banks are increasingly addressing climate-related financial risks. The Network for Greening the Financial System (NGFS), comprising 24 Central Banks and Supervisors, is developing analytical approaches like scenario analysis and stress tests. In the UK, the PRA and FCA are consulting on climate-risk disclosure based on TCFD recommendations.
• De Nederlandsche Bank (DNB) conducted a stress test on energy transition risks, finding that a disruptive transition could result in losses of up to 3% of stressed assets for banks, 11% for insurers, and 10% for pension funds.

APA

Climate Bonds Initiative (2019). Green Bonds Policy: Highlights from Q1-Q2 2018. https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q3-Q4-2018.pdf

Chicago

Climate Bonds Initiative. Green Bonds Policy: Highlights from Q1-Q2 2018. 2019. https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q3-Q4-2018.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Green Bonds Policy: Highlights from Q1-Q2 2018 |date=February 2019 |url=https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q3-Q4-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019green, author = {{Climate Bonds Initiative}}, title = {{Green Bonds Policy: Highlights from Q1-Q2 2018}}, institution = {Climate Bonds Initiative}, year = {2019}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Green-Bonds-Policy-Highlights-from-Q3-Q4-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }