Environmental integrity of green bonds: stakes, status and next steps

2 March 2018 - Climate Report - By : Ian COCHRAN, Phd / Morgane NICOL

This report presents key findings of the second work package of I4CE’s work program on green bonds, exploring the challenges and opportunities to ensure the environmental integrity the green bond market. It explores the understanding of stakes and challenges related to the environmental integrity of green bonds and
suggests potential next steps for both private and public stakeholders. First, the stakes for market actors to ensure the environmental integrity of green bonds are identified and categorized. Second, the existing approaches to defining the eligibility of ‘green’ assets are reviewed and key challenges and next steps are identified. Third, the existing approaches to external review and reporting are reviewed and key challenges and next steps are identified. The report then concludes with recommendations for policymakers and market actors to improve practice in this area.

This report transparently makes the assumption that the objective of ensuring ‘environmental integrity’ of the green bond market is to support the LCCR transition. While there may not be a full market consensus on the active contribution of the green bond market, this appears to increasingly be the principal policy-related objectives expected by a number of public, private and civil-society stakeholders. Furthermore, this is not just the case for the green bond market, but touches upon the need for ‘greening’ or ‘alignment’ of all financial assets as per Article 2.1c of the Paris Agreement.

This research program was supported by the Climate Works Foundation.

The full report and the executive summary for both reports are available below.

The results of WP 1 on Improving Contribution to the LCCR Transition are available here: Report 1. Green Bonds: Improving their contribution to the low-carbon and climate resilient transition


To learn more
  • 07/02/2024
    Approaches to meeting the Paris Agreement goals: options for Public Development Banks

    Options for Public Development Banks. Since the adoption of the Paris Agreement in 2015, several public development banks (PDBs) have responded with structured approaches to align their operations with the Agreement’s expectations (as described in Section 1). However, many PDBs, particularly those in emerging markets and developing economies, are yet to adopt an approach to align with the Paris Agreement (i.e., Paris alignment). As entities whose investment mandates are established by the Parties to the Paris Agreement (i.e., national governments), PDBs have specific obligations derived directly from these Parties’ commitments to act across all policy and regulatory frameworks under their jurisdictions, including for state-owned or state-mandated institutions and agencies. Accordingly, PDBs are expected to operate in a manner that supports the achievement of the Paris goals. More specifically, they are obligated to integrate their activities within the Agreement’s implementation mechanism by providing financial, technical, and capacity building support that is entirely consistent with national low-emission climate-resilient development pathways.

  • 04/19/2024 Foreword of the week
    World bank and IMF Spring Meetings: How can the reformed institutions play a leading role in funding the transition?

    Rethinking how development can be financed to take into account the rising challenges of our time is a fastidious task, especially when thousands of experts, decision makers and practitioners want to leave their print. The outline of the new international financial architecture is being debated again this week, with more questions open for discussion than consensus on the answers. 

  • 04/19/2024 Blog post
    More and better finance: maximising positive climate impacts for a timely transition 

    Since the Paris Agreement in 2015, significant strides have been made to foster the commitment of countries and financial institutions to address the climate crisis and ensure that climate risks and opportunities are considered in investments. However, with emissions required to peak before 2025, our window of opportunity is rapidly closing to keep +1.5°C within reach. Financial needs to lower greenhouse gas (GHG) emissions and to address adaptation priorities are increasing rapidly in the meantime. Luis Zamarioli Santos and Diana Cárdenas Monar, from I4CE, believe that commitment must urgently translate into action, and action must bring the urgent change the world needs. Both governments and public financial institutions have a central role to play to deliver more and better finance, maximising positive impacts. This blogpost highlights some opportunities to advance in the path for a systemic transformation, involving key stakeholders with a whole-economy approach.  

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !