Expert Talk on Green Bonds

On 8 October 2014 GIZ hosted an expert talk under the title The Emerging Climate Bond Market – Potential Source for Large-Scale Climate Finance for Developed and Emerging Markets?. Sean Kidney, founder and CEO of the Climate Bonds Initiative, and Tanja Havemann from the Swiss investment consultancy Clarmondial, shared market insights on the development of the green bonds market, classification, certification, and basic procedure for issuance. The speakers emphasized the need for climate change solutions to be viewed as investment opportunities rather than cost factors, and discussed the pricing structure and investor base for green bonds. Main challenges for the growing green bond market to become a mainstream market include risk bridging and reaching a sufficient scale in emerging markets, both requiring strong public sector support in the early stages. Green securitization and aggregation as well as improved steps to green validation are key issues for the rapid and favorable development of the green bonds market.