How do you finance your transition with climate bonds?
SustainAbility School #109
Financing the climate transition enables corporations to manage better risks associated with legislative changes and the shift toward a net-zero economy, while also providing opportunities to capitalize on emerging market trends and opportunities. The global market for green and sustainability-linked bonds (SLBs) has experienced robust growth and demonstrated resilience in an inflationary context, reflecting strong investor demand for these instruments. Non-financial corporations have issued approximately $200 million in green bonds over the past five years. While most issuances originate from the most advanced capital markets, the number of transactions from middle- and low-income countries, such as Brazil, is increasing, and the market in Romania is also growing.
Additionally, regulatory and market benefits are beginning to take shape. Legislative changes are a significant driver, prompting corporations to accelerate their climate transition and access dedicated financial instruments, with PRI identifying approximately 900 interventions in this field. The financial benefits of green issuances are also becoming evident, with preliminary evidence showing greater coverage and tighter spreads than conventional counterparts in the primary market. Moreover, it is estimated that around 30% of bonds achieve a "greenium" (a premium for green bonds).
Additionally, regulatory and market benefits are beginning to take shape. Legislative changes are a significant driver, prompting corporations to accelerate their climate transition and access dedicated financial instruments, with PRI identifying approximately 900 interventions in this field. The financial benefits of green issuances are also becoming evident, with preliminary evidence showing greater coverage and tighter spreads than conventional counterparts in the primary market. Moreover, it is estimated that around 30% of bonds achieve a "greenium" (a premium for green bonds).
By attending this webinar, you will learn about:
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Transition Planning Fundamentals
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Transition plans align business activities with net-zero goals by 2050. Early and steady emission reductions ensure a smooth and inclusive transition across all sectors and regions.
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Core Components of Transition Plans
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Ambition: Clear GHG reduction targets (e.g., Toyota aims for carbon-neutral plants by 2035). Action: Use renewable energy, upgrade infrastructure, and enforce green supplier standards. Accountability: Transparent progress monitoring and regular sustainability reporting.
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Transition Finance Overview
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Green Bonds/Loans: Fund specific green projects like renewables or sustainable agriculture. Sustainability-Linked Bonds (SLBs): Link bond terms to environmental KPIs, offering rewards or penalties.
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Transition Finance Process
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Define KPIs and SPTs (e.g., 25% fleet carbon intensity reduction by 2025). Choose suitable financing instruments (green bonds, SLBs). Build a financing framework aligned with international standards. Issue instruments and ensure independent auditing. Monitor and report results annually.
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Benefits of Transition Planning and Finance
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Aligns with climate goals: Supports the Paris Agreement. Enhances business resilience: Boosts investor confidence, facilitates funding, and drives innovation. Promotes accountability: Builds trust through transparent processes and measurable progress.
About the guest speaker
Sabine Laurent is a physicist and quantitative finance researcher passionate about evidence-based initiatives for transitioning to a sustainable economy. Sabine joined Climate Bonds in November 2022 to lead market research on climate transition.
Before joining Climate Bonds, Sabine spent 8 years at JP Morgan Chase as a quantitative researcher for fixed-income market risk and model validation. She also served as a lecturer at Paris Descartes University, conducting fundamental research in optoelectronics. Sabine holds a PhD in Physics from the University of Paris-Sorbonne and a master’s degree from the École Normale Supérieure de Lyon.
Before joining Climate Bonds, Sabine spent 8 years at JP Morgan Chase as a quantitative researcher for fixed-income market risk and model validation. She also served as a lecturer at Paris Descartes University, conducting fundamental research in optoelectronics. Sabine holds a PhD in Physics from the University of Paris-Sorbonne and a master’s degree from the École Normale Supérieure de Lyon.
Devino membru
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Dacă angajatorul tău nu s-a implicat încă, dar vrei să participi la edițiile viitoare și să ai acces la edițiile trecute, cere decidenților din organizația ta să devină membru.