Search Climate Insights Directory

The Hong Kong green bond market in 2020 saw a record number of deals but an 18% decline in total volume to USD 2.09bn. Low-carbon buildings remained the primary theme for proceed allocations, though waste reached a record high. The market is supported by new government initiatives, including a 2050 carbon neutrality pledge and the Green and Sustainable Finance Grant Scheme. While local issuance is significant, mainland China entities continue to drive the broader green debt market arranged in Hong Kong.

The Nordic GSS bond market reached a cumulative volume of USD 88.2bn by the end of 2020, with green bonds accounting for 96% of this total. Sweden is the regional leader, contributing half of the green bond volume and issuing the first Nordic sovereign green bond in September 2020. The market is characterized by strong public sector participation and a high prevalence of low-carbon building projects. External review coverage is exceptionally high, with 99% of cumulative green bond volume reviewed, primarily through Second Party Opinions (SPOs).

The global GSS+ debt market reached a cumulative volume of USD 2.8 trillion by the end of 2021, with new issuance in 2021 alone surpassing USD 1 trillion. Green bonds remain the largest segment, while sustainability-linked bonds (SLBs) showed the fastest year-on-year growth. The report highlights the dominance of developed markets, particularly Europe, and the emerging role of sovereign issuers and taxonomies in standardising the market.

The document examines the potential for green bonds to drive the decarbonisation of Mexico's building sector. It highlights that while only 10.6% of green bond proceeds from Mexican issuers were allocated to low-carbon buildings as of September 2020, there are significant opportunities, including a USD 18bn potential in Mexico City's housing growth. The briefing details the use of international and local certification proxies, such as EcoCasa, to identify eligible assets under the Climate Bonds Standard and discusses alternative financial instruments like CKDs, CERPIS, and FIBRAS that could be labelled as green.

The Hong Kong green bond market in 2019 saw a slight decrease in issuance by domestic entities to USD 2.6 billion, but achieved greater issuer diversity and the launch of the first government green bond. Low-carbon buildings dominated proceed allocations at 61%. The market is increasingly characterized by local currency denomination and a strong connection to the Greater Bay Area, with total GBA-domiciled issuance reaching USD 6.4 billion. Regulatory bodies like the HKMA and SFC have introduced measures to enhance ESG disclosures and sustainable banking frameworks to bolster the city's status as a regional sustainable finance hub.

EESI urges the U.S. House of Representatives Committee on Appropriations to provide at least level funding for key Department of Energy (DOE) programs in FY2021. The testimony highlights the importance of the Office of Energy Efficiency and Renewable Energy (EERE) in achieving net-zero energy homes and reducing greenhouse gas emissions through research, development, demonstration, and deployment (RDD&D). Specific funding requests include at least $410 million for the Vehicle Technologies Program, $395 million for the Advanced Manufacturing Office, and $300 million for the Buildings Technologies Office, among others.

The author contends that the American Energy Innovation Act (AEIA) contains a critical gap due to the removal of building-code provisions from the Portman-Shaheen legislation. According to the American Council for an Energy Efficient Economy (ACEEE), these missing provisions—Sections 101 and 102—would have saved Americans over $41 billion and reduced carbon emissions by 1.1 billion metric tons by 2050. The document rejects claims by the National Association of Home Builders (NAHB) that energy-efficient codes make housing unaffordable, arguing instead that lower monthly utility bills improve long-term affordability and that such codes enhance building safety and resilience against extreme weather.

The briefing introduces 'hours of safety' to measure building resilience during extreme cold events. Simulations in Duluth, Minnesota, show that high-performance envelopes, such as Passive House standards, maintain safe temperatures significantly longer than older or code-compliant homes, highlighting the potential for this metric to guide resilience planning and weatherization efforts.

The NewClimate Institute explored the construction of Net-Zero Energy Buildings (NZEBs) in Cartagena, Colombia, as a virtual Article 6 pilot. The study found that NZEBs are currently non-existent or uncommon in Colombia and Latin America, with a price premium of approximately 15% over standard buildings. Due to underdeveloped supply chains for solar PV and dehumidification systems, as well as insufficient domestic regulations, the project is considered additional and inaccessible without foreign support, meaning Colombia could likely export mitigation outcomes via Article 6 without endangering its own Nationally Determined Contribution (NDC).

The report concludes that the US model of ABS securitisation for PACE loans is not directly applicable to Europe due to regulatory differences, a lack of historical performance data for 'Simple, Transparent and Standardised' (STS) treatment, and diverse national legal frameworks. Instead, it recommends localised solutions such as covered bonds, residential mortgage-backed securities (RMBS), and aggregation platforms. The document provides a global market analysis of green bonds for low-carbon buildings and outlines standardisation principles for energy efficiency loans to attract institutional capital.

The Environmental and Energy Study Institute (EESI) outlines a comprehensive strategy for the U.S. to achieve net-zero emissions by mid-century. Key recommendations include restoring CAFE standards, investing in sustainable aviation fuels and electric aircraft, establishing national energy efficiency and renewable portfolio standards, and targeting net-zero energy for new buildings by 2050. The report emphasizes environmental justice, calling for a national climate bank and increased funding for the Rural Energy Savings Program. It also advocates for carbon pricing with border tax adjustments, the elimination of fossil fuel subsidies, and a transition to a circular economy to reduce plastic pollution.

Salesforce has achieved net-zero greenhouse gas emissions since financial year 2018 and aims for 100% renewable electricity for global operations by 2022. The company is implementing net-zero carbon building standards by 2030 and requires 50% of its suppliers by emissions to set reduction targets by 2025.

The report highlights New Zealand's climate leadership through policies like the Zero Carbon Bill 2019 and the ban on new offshore oil and gas drilling. It notes that while the green bond market is small, it is growing, with total green and sustainability debt from New Zealand entities reaching NZD3.7bn. The document identifies significant investment needs in infrastructure, particularly in Auckland, and explores five key sectors for green investment: renewable energy, low-carbon transport, sustainable water management, sustainable waste management, and green buildings.

The German green bond market reached a cumulative emission volume of 33.6 billion EUR by May 2019, ranking fourth globally. The market is dominated by financial institutions and development banks, with clean energy and low-carbon buildings as the primary sectors for funding. The report highlights a high rate of external verification and reporting, while noting significant potential for growth among fully climate-aligned companies, particularly in the transport sector via Deutsche Bahn.

As of May 2019, Germany's cumulative green bond issuance reached EUR33.6bn, with clean energy and low-carbon buildings as the primary sectors for proceeds. The market is dominated by financial corporates and development banks, notably KfW, with a high prevalence of external reviews and post-issuance reporting. While sovereign green bonds have not yet been issued, the German government is exploring this possibility for 2020. The report also identifies a significant opportunity for growth among climate-aligned issuers, particularly in the transport sector via Deutsche Bahn.

The report argues that current LCAs for building materials often lack transparency and omit critical data, particularly regarding biogenic carbon in wood and operational emissions. It concludes that for energy-efficient, long-lived buildings in Canada, the choice of structural material has a negligible impact compared to operational efficiency, and recommends prioritizing building longevity and energy efficiency over material substitution.

The Japanese green bond market reached a cumulative issuance of 9.7 billion USD by 2018, ranking 10th globally. The market is primarily driven by financial institutions and large corporations, with a strong concentration in the building and energy sectors. While the public sector remains relatively inactive, the report identifies significant opportunities for expansion in low-carbon housing, sustainable transport, and resilient infrastructure to support Japan's Nationally Determined Contributions (NDC).

The Hong Kong green bond market experienced significant growth in 2018, driven by government incentives and private sector activity. While local entities issued USD 2.3bn in 2018, Hong Kong also serves as a major platform for non-local issuers, particularly from mainland China, with total issuance reaching USD 11bn according to HKMA data. The market is characterized by a high prevalence of external reviews and a concentration of proceeds in low-carbon buildings, water, and renewable energy.

Japan's green bond market, the 12th largest globally, is primarily driven by financial and non-financial corporate issuers, with a strong focus on buildings and energy projects. While the market has seen significant growth, particularly between 2016 and 2017, the report identifies substantial untapped potential in the public sector, residential property, and the manufacturing industry to help Japan meet its 2030 and 2050 greenhouse gas reduction targets.

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.