January has kicked off with a stream of green finance developments and announcements stretching from Europe to China.
It’s been a busy start to the year here’s some of this month’s best green bond stories you won’t want to miss.
Sweden’s Oldest Bank Joins Partners Programme
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Leading European bank Swedbank AB is the latest Scandinavian financial organisation to join our Climate Bonds Partners Program. Domiciled in Sweden, bank operations are centred across the Nordic region and Baltic States.
Marika Dimming, Head of Green Bonds at Swedbank puts their view:
“Climate change is amongst society’s greatest challenges, and research shows that an increased concentration of greenhouse gases is warming the planet, with the potential to create substantial risks to both prosperity and growth. “
“Now is the time to act, and becoming a Climate Bonds Partner gives us an opportunity to do our part.”
You can read more about Swedbank’s commitment to sustainability and climate action here and the full announcement here.
Ontario Issues Third & Canada’s Biggest Green Bond 
Canada’s largest province has just announced its third green bond with a C800m (USD 610m) issuance, the largest in Canada so far.
Readers with sharp memories will recall Premier Kathleen Wynne announcing their intentions way back in October 2013, with first issuance in late 2014 and second in January 2016.
This 2017 bond was foreshadowed by Yvan Baker MPP, at the October 2016 launch of the Canada State of the Market Report 2016, jointly produced by the Smart Prosperity Institute and Climate Bonds.
As our 2016 Canada Report reflected; we think Canada has huge potential for green bonds at both a provincial and sovereign level.
There’s more here on this big Ontario bond and check out the eligible projects listed in this mid-January presentation from the Ontario Financing Authority.
California Goes Forward on Green Bonds & Infrastructure
Treasurer of America’s largest state John Chiang, is forging ahead on climate finance with the release of Growing the US Green Bond Market Vol 1, prepared in part from interviews with major market participants across the US.
The USD 240m SFPUC Climate Certified Water Bond from 2016 is an example of what’s possible.
California is also not acquiescing to the new atmosphere of climate denial at the federal level, as this feisty media release reflects.
A quick look at this 19m.29s Facebook clip of Chiang’s keynote address to the 15th annual Cleantech Forum in San Francisco confirms his views on the need for green finance and climate action.
You can find the report here, and for US readers, don’t forget to register for the Treasurer’s forthcoming Green Bonds Symposium to be held in the Fall.
Well done, Mr. Chiang!
Mexican Climate Finance Council Fires Up
Meanwhile, south of the Rio Grande, the Mexican Advisory Council in Climate Finance (CCFC) has held its first meeting for 2017.
A joint project of Climate Bonds Initiative and the Mexican Stock Exchange (BMV) with Co-Presidency shared between major investment and pension managers Afore Sura and Afore XXI Banorte, the CCFC has broad representation from finance sector stakeholders and a big agenda to develop green finance in Mexico.
Three working groups have been now been formed to develop:
- Public policy,
- Mexican market standards and
- Market education.
We also understand some new bonds in both Pesos and USD are in the pipeline for issuance over the next six to eight months (!).
If your Spanish is good this El Economista Mexico City interview with CEO Sean Kidney provides some views on where green finance could develop in LATAM.
He highlights the possibilities for Mexico partnering with US states like California, New York, Illinois, and Massachusetts to develop regional compacts around sustainable investment and push forward on climate action plans.
An intriguing proposition.
Meantime make a note in your diary for the inaugural annual conference of the CCFC to be held on March 16th 2017.
Contact Eduardo Paquero at our local partner Mexico2 for details.
France Kicks off in Year of the Sovereign Bond 
But France has now followed up in second place with a whopping EUR 7bn (USD 7.5bn) issuance, maturing in 2039.
You can read the announcement and read one of the many stories here and here.
Or for simplicity you can watch this short clip of Minister for the Environment Energy and Marine Affairs Segolene Royale on the floor of the National Assembly responding to a question on French green finance policy. (1m.58s)
Alpha Trains and New Rolling Stock
We like this Alpha Trains Certified Climate Bond, a world's first!
It stands out from the clean energy, water, low carbon buildings and energy efficiency bonds we’re generally familiar with.
Alpha Trains, based in Luxembourg, is Europe’s largest private lessor of rolling stock, including passenger trains and locomotives used by operators in 13 European countries.
The EUR 250m US private placement has been exclusively used to refinance debt associated with the acquisition of 63 modern energy efficient and environmental friendly electric passenger trains.
Train buffs can read background details on the environmental design features of the new rolling stock here and the rest of us can hope we one will get to ride on the greenest trains in Europe.
Toot-Toot!
Our Biggest January Newsletter
As a final item, take a quick look at our latest Standards Newsletter released just last week.
You can find an update on the newly launched Standard 2.1, who the big Certified Climate Bond issuers from last quarter are and a look forward into 2017.
There’s lots more, download a copy here.
'Till February folks,
Climate Bonds Initiative
Disclaimer: The information contained in this communication does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation.
