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The report finds that while Korea has a massive overall bond market and strong climate policies, its climate bond market remains small with only six bonds issued by four entities. It identifies a potential USD 18bn in unlabelled climate-aligned bonds and suggests that Korea could lead the Asian region by adopting national guidelines, sovereign issuance, and tax incentives, drawing on successful models from China, India, and other ASEAN nations.

The document details various green asset-backed securities (ABS) and aggregation mechanisms used to fund low-carbon transitions. It highlights specific instruments such as synthetic ABS, PACE ABS, solar ABS, and green covered bonds, providing examples of issuers and the types of underlying assets—ranging from energy-efficient mortgages to electric vehicle leases—that enable institutional investors to finance smaller-scale green assets.

The report introduces Sustainable Land Bonds (SLBs), which are sovereign bonds used to finance low-carbon land management. Unlike standard bonds, SLBs are paired with Results-Based Payment (RBP) agreements where third parties offset interest costs if the issuing country meets specific emission reduction targets. This model aims to help tropical forest countries achieve their Paris Agreement Nationally Determined Contributions (NDCs) while stimulating rural economic growth and attracting institutional investment.

TLFF I Pte Ltd issued a USD95m sustainability bond as part of a larger USD350m project, a joint venture between Michelin and Barito Pacific Group. The proceeds are designated for a sustainable rubber plantation on 34,000ha of degraded land in Indonesia's Jambi and East Kalimantan provinces, with the remaining 54,000ha of the 88,000ha total area dedicated to conservation, aquaculture, land restoration, and smallholder plantations. The Climate Bonds Initiative notes that the project aligns with the Nature Based Assets category of the Climate Bonds Taxonomy due to its focus on sustainable agriculture, nature corridors for endangered species, and restoration of degraded land.

First Environment, Inc. conducted a pre-issuance verification of NYSERDA's Residential Solar Financing Revenue Bonds, Series 2018A from January 26 to February 15, 2018. The verification assessed whether the bonds, intended to fund solar electric system installations, met the Climate Bonds Standard v2.1 and Solar Sector Criteria v2.1. Using a limited level of assurance and ISAE 3000 standards, the verifier concluded that the bonds were prepared in all material respects according to the required standards.

The 2017 Chinese green bond market reached 248.6 billion RMB (37.1 billion USD), with 38% of issuances not meeting international green definitions. While commercial banks remain the largest issuers, there is a growing trend of issuances from local government financing platforms and policy banks. The report highlights the introduction of the 'Bond Connect' mechanism and the 'Green Belt and Road' initiative as key drivers for future growth and international capital flow.

The report analyzes 19 green bonds issued in Q3 2017, finding that they generally achieve higher oversubscription and tighter pricing relative to initial price thoughts than vanilla bonds. While a 'greenium' (pricing without a new issue premium) was observed in a minority of cases, half the sample did not exhibit a new issue premium. EUR green bonds showed strong secondary market performance, consistently tightening more than their corresponding indices after 7 and 28 days.

oekom research verified that Landesbank Baden-Württemberg's (LBBW) Green Bond Programme conforms to the Climate Bond Standard Version 2.1. The programme focuses on financing green commercial buildings and renewable energy projects, specifically on- and offshore wind and solar energy. LBBW employs a methodology developed by Drees & Sommer Advanced Building Technologies GmbH to identify commercial buildings in the top 15% of the German market for low carbon performance, using building age and energy performance certificates as primary criteria. The verification confirmed LBBW's processes for project selection, tracking of proceeds, and reporting commitments.

In 2017, global green bond issuance reached USD 155.5 billion, a 78% increase over 2016. The market was led by the US, China, and France, with a notable rise in sovereign issuance and the emergence of new issuers from 37 countries. While renewable energy remains the primary use of proceeds, there was significant growth in allocations for low carbon buildings and transport. The report highlights a push toward harmonized international standards and forecasts a need for the market to reach USD 1 trillion by 2020 to impact climate targets.

Sustainalytics verified that AC Energy's green bond framework meets the Climate Bonds Standard Version 2.1 for wind, solar, and geothermal energy. The bond intends to finance new and existing projects across the Philippines, Australia, Vietnam, and Indonesia, including a geothermal facility with emissions of 30.14 gCO2equ/kWh. AC Energy aims to develop 5 GW of renewables capacity by 2025.

The report analyzes the growth of green bond markets in emerging economies, highlighting the critical role of national guidance and alignment with international standards like the Green Bond Principles. Through case studies of countries such as China, Indonesia, and Morocco, it identifies key barriers—including lack of capacity and limited investor demand—and proposes a 'Green Bond Market Development Toolkit' featuring a self-assessment matrix and a roadmap of milestones to accelerate sustainable capital flows.

Sustainalytics has provided a pre-issuance verification letter confirming that DNB Boligkreditt AS's Green Covered Bond meets the Low Carbon Buildings criteria of the Climate Bonds Standard. The bond is intended to finance or refinance a loan portfolio of energy efficient residential buildings in Norway. Sustainalytics found that DNB's eligibility criteria, which include compliance with Norwegian building codes TEK10 or TEK17, target residential mortgages in the top 7% of energy performance in the Norwegian market, exceeding the Climate Bond Standard's requirement of the top 15%.

Sustainalytics verified that Industrial Bank Co.'s planned green bond issuance aligns with the Climate Bonds Standard Version 2.1, specifically for assets in onshore wind, solar power, and electrified urban rail transit.

Sustainalytics conducted a pre-issuance verification of KBC Group's green bond between April and May 2018. The verification confirms that the bond's intended use of proceeds—financing onshore and offshore wind, onshore solar, and energy-efficient residential mortgages—aligns with the Climate Bonds Standard Version 2.1. The report details specific projects in Flanders, Wallonia, and the North Sea, and confirms KBC's internal processes for tracking proceeds and reporting.

The global green bond market reached a cumulative issuance of USD 521bn by 2018, with USD 167.6bn issued in 2018 alone. The USA, China, and France emerged as the leading national markets. The report highlights a significant increase in issuance from financial institutions, particularly commercial banks, and a growing trend toward shorter-dated bonds. While Europe remains the largest overall market, the Asia-Pacific region saw the highest year-on-year growth at 35%. The market is also diversifying into other labelled instruments, including sustainability, social, and blue bonds, and expanding into emerging markets through the adoption of regional standards like the ASEAN Green Bond Standards.

The report identifies significant barriers to international investment in China's green bond market, including divergent green definitions, limited market awareness, and infrastructure gaps. It recommends aligning standards with international benchmarks, simplifying approval processes, and enhancing market transparency to mobilize the private capital necessary for China's environmental goals.

The document identifies significant barriers to the growth of China's green bond market, including discrepancies between domestic and international green definitions, capital flow controls, and a lack of transparency in domestic credit ratings. It argues that while China has become the world's largest green bond market, only 2% of its bonds are foreign-owned. To attract international private capital—which is expected to provide 85-90% of the investment needed for China's green transition—the paper recommends harmonising green standards, simplifying approval processes for overseas issuance, developing RMB hedging instruments, and opening the domestic market to international credit rating agencies.

The report highlights a significant surge in Canadian green bond issuance in 2017, which reached C$3.8 billion, exceeding all previous years combined. While Canada ranks 10th globally for labelled green bonds, the report identifies a substantial 'climate-aligned' bond universe of C$39 billion, suggesting significant untapped potential. Growth has been driven primarily by provincial entities like Ontario and Quebec, and government-backed entities such as Export Development Canada, with the City of Ottawa recently becoming the first municipality to issue a green bond. The document argues that while policy drivers like the Pan-Canadian Framework on Clean Growth and Climate Change are favorable, Canada lacks a comprehensive financial plan to mobilize private capital. It recommends that the federal government issue a sovereign green bond and establish national sustainable finance standards to further catalyze the market.

The report analyzes 19 USD and EUR green bonds issued between April and June 2017, finding that while green bonds generally follow vanilla market trends in oversubscription and pricing, EUR corporate green bonds showed superior spread tightening in the immediate secondary market. Approximately 54% of the sampled bonds were allocated to dedicated green investors, with higher concentrations in Developed Markets (62%) than Emerging Markets (25%).

The Los Angeles County Metropolitan Transportation Authority (LACMTA) issued $556,850,000 in Series 2017 bonds. The Series 2017-A Green Bonds ($471,395,000) are designated for rail transit improvements, including the Southwestern Yard maintenance facility, the Universal City Station pedestrian bridge, and the procurement of light and heavy rail vehicles. The Series 2017-B Bonds ($85,455,000) are used to refund Series 2011-B bonds. Both series are limited obligations secured by a first lien on Pledged Revenues, primarily derived from the Proposition A Sales Tax (a 0.5% retail transactions and use tax). The Series 2017-A bonds are 'Climate Bond Certified' based on the Climate Bonds Standard. The issuance is supported by a Reserve Fund, which as of the issuance date was expected to be approximately $160 million, consisting of a $85.5 million AGM Reserve Policy and $74.5 million in cash and investments.