Green Bonds Policy: Highlights from Q1-Q2 2018

This briefing by the Climate Bonds Initiative outlines public sector green bond activity and policy developments during 2018. It details sovereign issuances, the creation of green bond market development toolkits for emerging markets, the European Union's progress toward a sustainable finance taxonomy, and the increasing role of central banks in managing climate-related financial risks.

• Sovereign green bond issuance accounted for 10.5% of the green bond market share by the end of 2018. Notable activities included Poland becoming the first sovereign repeat issuer with a EUR1bn (USD1.25bn) bond, France issuing EUR5.1bn under its green OAT, and Indonesia launching the first sovereign green sukuk for USD1.25bn.
• Several countries announced plans for sovereign green bonds in 2019: Kenya is preparing its first issuance to target manufacturing, transport, and agriculture (with estimated opportunities of USD853m over 10 years); the Netherlands committed to an issuance between EUR3.5bn and EUR5bn; and Vietnam aims to develop green sovereign issuances alongside USD878bn in government bonds.
• The Republic of Seychelles issued the first sovereign blue bond in October 2018 for USD15m to support sustainable marine and fisheries projects. This issuance was supported by a USD5m concessional loan from GEF and a USD5m guarantee from the World Bank.
• In 2018, the Climate Bonds Initiative, IFC, and the Sustainable Banking Network developed the Green Bond Market Development Toolkit for emerging markets. This toolkit includes a Planning Matrix for capital market development, a Roadmap with Common Milestones, a Capacity Building Needs Assessment, and a set of Common Objectives.
• New national green bond guidelines were published in 2018 in Egypt and the Philippines. Egypt's Financial Regulatory Authority approved a framework in July 2018 for projects in transport, construction, and renewable energy. The Philippines' Securities and Exchange Commission approved guidelines in August 2018 based on ASEAN Green Bonds Standards, explicitly excluding fossil fuel power generation.
• The European Commission is developing an EU Taxonomy for Sustainable Finance based on six environmental objectives: climate change mitigation, climate change adaptation, protection of healthy ecosystems, pollution prevention and control, transition to a circular economy (waste prevention and recycling), and sustainable use and protection of water and marine resources.
• Central banks are increasingly addressing climate risks through the Network for Greening the Financial System (NGFS), which includes 24 Central Banks and Supervisors and 5 international organisations. In the UK, the Bank of England's PRA and FCA are increasing supervision of climate-related financial risks, with the Governor of the BoE announcing that climate change impacts will be included in bank stress tests.
• De Nederlandsche Bank (DNB) conducted a stress test on energy transition risks, finding that disruptive transitions could lead to losses of up to 3% of stressed assets for banks, 10% for pension funds, and 11% for insurers.

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} }