3rd Annual OECD Green Investment Financing Investment

1. Presentation to OECD Green
Investing Financing Forum
ADB Institute
Tokyo, 13 & 14 October 2016

2. Labelled Green Bond Issuance
0
10
20
30
40
50
60
70
80
90
100
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
USD billion
Estimates
Extrapolated
ABS
Project
Other Corporate*
Financials
Utilities/Energy
US municipal
Other SSA
KfW
IFC
Corporate
ABS &
Project
$72 bn
BNEF 2016
extrapolation
(based on
current
issuance rate)
$80 bn
SEB estimate
$85 bn
HSBC est.
$70 bn
S&P estimate
$52 bn
9 June 2016
$100 bn
CBI est.
SSA
Source: Bloomberg and CBI data in OECD (2016, forthcoming) Mobilising the Bond Markets for a Low Carbon
Transition

3. Outstanding Green Bonds by Country (August 2016)
Source: CBI/HSBC (2016)
Supranationals
23%
United States
19%
France
12%
China
10%
Germany
9%
Netherlands
8%
Sweden
4%
Canada
2%
India
2%
Norway
1%
Rest of the
World
10%

4. Green Bond Ecosystem
External
Reviews
GB
Standards
and
Taxonomies
Green Bond
Principles

5. Green Bond Principles community (as of 30 Sept 2016)
48%
28%
24%
Members (123)
Underwriters (59)
Investors (35)
Issuers (29)
16%
18%
5%
1%
3%30%
27%
Observers (77)
Financial Institutions
(12)
Law/accounting firms
(14)
Market
infrastructures (4)
Insurance Cie (1)
Public sector officials
(2)
NGOs & others (23)

6. GBP 2016 Executive Committee
Investors Issuers Underwriters
ACTIAM EBRD BoA MERRILL LYNCH
BLACKROCK EIB BNP PARIBAS *
CalSTRS ENGIE CREDIT AGRICOLE CIB
KFW IFC HSBC
MIROVA NIB * JP MORGAN
STANDISH MELLON A M UNIBAIL-RODAMCO MORGAN STANLEY
TIAA-CREF UNILEVER RABOBANK
ZURICH ASSURANCE GROUP WORLD BANK SEB
*newcomers

7. GBP Continuity
The GBP remains based on four pillars:
• Use of Proceeds
• Process for Project Evaluation and Selection
• Management of Proceeds
• Reporting
And External Review (formerly Assurance) recommendations
Under the Governance of the Green Bond Principles (GBP) it is the Executive
Committee that decides on updates of the GBP with the input of members and
observers through annual consultations that are organised by the Secretariat.

8. GBP 2016 Update
Highlights of the GBP 2016 Update
 Recommended online public disclosure of Green Bond issuer alignment with the GBP through
GBP Resource Centre
 Updated and additional Green Project categories
 Clarifications on Green Bond issuer reporting obligations and disclosure, as well as resources
for impact reporting
 External review definitions and public disclosure on the GBP Resource Centre
 Definition of Green Bonds vs pure play and climate/green themed bonds
 Release of Guidelines for Social Bond issuers

9. Updated use of proceeds categories
Renewable energy (including production, transmission,
appliances and products)
Energy efficiency (such as in new and refurbished buildings,
energy storage, district heating, smart grids, appliances and products)
Pollution prevention and control (including waste water
treatment, greenhouse gas control, soil remediation, recycling and
waste to energy, value added products from waste and
remanufacturing, and associated environmental monitoring
analysis)
Sustainable management of living natural resources
(including sustainable agriculture, fishery, aquaculture, forestry and
climate smart farm inputs such as biological crop protection or drip-
irrigation)
Terrestrial and aquatic biodiversity conservation
(including the protection of coastal, marine and watershed
environments)
Clean transportation (such as electric, hybrid, public, rail, non-
motorized, multi-modal transportation, infrastructure for clean energy
vehicles and reduction of harmful emissions)
Sustainable water management (including sustainable
infrastructure for clean and/or drinking water, sustainable urban
drainage systems and river training and other forms of flooding
mitigation)
Climate change adaptation (including information support
systems, such as climate observation and early warning systems)
Eco-efficient products, production technologies
and processes (such as development and introduction of
environmentally friendlier, eco labelled or certified products,
resource efficient packaging and distribution)

10. GBP Regulatory Recognition
• China has released Government guidelines largely based on international
market practices referring to the GBP and with an official taxonomy for
environmental projects.
• France has released an official label for green funds which makes alignment
with the GBP a requirement in addition to respecting guidelines for eligible
environmental projects
• The Securities Exchange Board of India has released listing disclosure
requirements for Green Bonds based on the GBP and international market
practice

11. Contacts:
Greenbonds@icmagroup.org
www.icmagroup.org/greenbonds