1. Moving on from symbolic financing of business as usual projects
Asia Pacific Carbon Forum, 7th September 2016
Jay Mariyappan

2. Green bonds today
Small segment of the capital markets (USD 34.6bn issued half year 2016)
Primarily financing activities that would have normally been financed
Is not providing cheaper capital for climate finance (pricing same as ordinary bonds) – same yield & ratings as comparable investment products
Mainly provided by high investment grade issuers with ample access to finance
Climate Bonds Initiative 2016

3. Climate-aligned bonds (which make up the majority of issuance)
State of the Climate Bonds Market 2016 – Climate Bonds Initiative

4. Strictly Private and Confidential
Transport segment
State of the Climate Bonds Market 2016 – Climate Bonds Initiative

5. Strictly Private and Confidential
Energy segment
State of the Climate Bonds Market 2016 – Climate Bonds Initiative

6. Why only business as usual projects?
Bonds are usually used to refinance existing assets and recycle into new projects
Still relatively risk averse with regards to maturity of technologies, project size and geography
Still being provided by mainstream (high investment grade) issuers
Climate Bonds Initiative 2016

7. What do we need to move towards green bonds playing a key role in mitigating climate change?
Should be mainstream rather than a small segment of capital markets
Bigger questions around vanilla bonds and the impact of the use of bonds proceeds
At least USD 1 trillion per year by 2020 (Climate Bonds Initiative) as a contribution to the USD 2-3 trillion needed to combat climate change
Domestic green bond issuance in emerging markets (requires domestic capital as well as international)
Regulatory changes to allow for capital inflows in emerging market countries
Lower cost of capital for issuers – investors would have to sacrifice returns
Pureplay borrowers who can funnel bond proceeds to smaller, riskier projects
Government action to derisk projects (e.g. regulation guarantees and long term contracts)
Climate Bonds Initiative 2016

8. Jay Mariyappan Managing Director, Delivery Sindicatum Sustainable Resources Group 80 Anson Rd, #28-02, Fuji Xerox Towers Singapore Tel: or