亚开行-在发展中国家发行绿色债券的详细指南（英）-2021.12-51页_715kb

Summary of Detailed Guidance for Issuing Green Bonds in Developing Countries

Core Content

This document provides comprehensive guidance for issuing green bonds in developing countries, particularly within the ASEAN+3 region. It outlines the process of labeling bonds as green, the key considerations for aligning with green definitions, and the steps required to maintain the integrity of the green label over time. The guidance is structured around two parallel tracks: the identification of eligible green projects and the establishment of internal systems and controls.

Main Points

1. Labeling Process Overview

• The labeling process involves two main tracks:

  • Eligibility Track: Ensuring that the projects, assets, and expenditures associated with the green bond are aligned with a set of green definitions or taxonomy.
  • Integrity Track: Establishing internal procedures, governance, and controls to support the labeling process and ensure transparency.

• The use-of-proceeds approach is the most common and is used by most green bond issuers. It requires the proceeds to be used exclusively for eligible green projects, assets, or expenditures.

• The sustainability-linked approach is an alternative method that ties the bond's financial terms to the achievement of sustainability targets, often involving changes in coupon rates.

2. Identifying Green Projects, Assets, and Expenditures

• Eligible items include:

  • Owned Projects and Assets: Physical assets like infrastructure, buildings, and land, as well as projects in construction or redevelopment.
  • Financing Arrangements: Capital expenditures, subsidies, and incentives for green projects.
  • Related Expenditures: Maintenance, monitoring, and research costs related to the green projects.

• The selection of green projects should be based on the issuer’s chosen taxonomy, which can be international (e.g., Climate Bonds Initiative, EU Taxonomy) or regional (e.g., ASEAN Green Bond Standard) or national (e.g., PRC Green Project Catalogue).

3. Selecting an Appropriate Set of Green Definitions

• Several options exist for green definitions:

  • Green Bond Principles (GBP): A high-level list with broad categories, considered the minimum level of green ambition.
  • ASEAN Green Bond Standard: Adopted in 2017 and updated in 2018, uses GBP categories and excludes fossil fuel projects.
  • Climate Bonds Initiative (CBI) Taxonomy: Widely used by green bond index providers and external reviewers.
  • EU Sustainable Finance Taxonomy: Complex and includes additional checks beyond green credentials, may be necessary for EU market access.

• Key considerations include:

  • Jurisdictional requirements (e.g., PRC has strict regulations).
  • Investor and market expectations (international investors may require international definitions).
  • The relevance of definitions to the location of the projects and the issuer’s geographic or economic ties to ASEAN.

4. Creating the List of Green Projects and Assets

• The issuer must prepare a list of green projects and assets that are eligible under the chosen taxonomy.
• The list should be updated and maintained over the bond's full term.
• A documented decision-making process is required to assess and manage the eligibility of projects and to identify and mitigate environmental and social risks.

5. Developing a Green Bond Framework

• A Green Bond Framework or Sustainable Finance Framework is essential to demonstrate the integrity of the green label.

• The framework must include:

  • Use of Proceeds: Clear allocation of funds to eligible green projects.
  • Project Selection: Criteria for choosing green projects and assets.
  • Proceeds Management: How funds are managed and tracked.
  • Reporting and External Review: Mechanisms for disclosure and verification of green credentials.

• The framework should align with the issuer’s existing governance and procedures and may be short (3-5 pages) or very detailed (20+ pages).

6. Post-Issuance Reporting and Disclosure

• Bond issuers must report on the allocation of proceeds and the green credentials of the bond.
• Reporting formats and channels should be clear and consistent.
• Regular updates and disclosures are necessary to maintain transparency and investor confidence.

7. Engaging with External Reviewers

• External reviewers are used to assess the green eligibility and integrity of the bond.
• They provide reassurance to investors and help align the bond with market expectations.
• The process includes pre-issuance and post-issuance assessments, and the final report must be clear and comprehensive.

8. Seeking Certification or Recognition

• There are different pathways for certification, including international and regional standards.
• Certification can enhance investor confidence and market visibility.
• Key decision points include selecting the right taxonomy, engaging with external reviewers, and aligning with investor expectations.

9. Impact Reporting

• Impact reporting is a critical component of green bond labeling.
• It includes input-output-outcome-impact frameworks and specific impact indicators.
• Ex ante and ex post reporting can be used, depending on the issuer's strategy and the nature of the projects.

10. Further Issuance of Labeled Instruments

• Once the first green bond is issued, subsequent transactions can be more efficient.
• Issuers can stack multiple green bonds under a single portfolio, which simplifies the process.
• Strong investor appetite for green, social, and sustainable bonds supports further issuance.

Key Information

• ASEAN+3 Green Bond Market: Has seen significant growth, with the PRC having the largest green bond market.
• Green Bond Frameworks: Can range in length and detail, but must include clear use-of-proceeds, project selection, proceeds management, and reporting.
• Taxonomy Importance: Choosing the right taxonomy is critical for alignment with investor expectations and regulatory requirements.
• Internal Systems and Controls: Must be well-documented and maintained to ensure the integrity of the green label.
• Impact Measurement: Requires tracking of environmental and social outcomes, which can be done through specific indicators and frameworks.
• External Review: Provides credibility and confidence to investors, especially in international markets.
• Investor Confidence: First-time green bond issuers benefit from the positive momentum and credibility that comes with being the first in their jurisdiction or sector.

Conclusion

This guidance note is designed to help corporate bond issuers and their advisors navigate the process of issuing green bonds, emphasizing the importance of clear definitions, robust internal systems, and effective communication. It supports the development of sustainable finance markets in developing countries and encourages the adoption of green, social, and sustainable finance instruments.