Trends in Taxonomy Development and Lessons from Emerging Markets.
February 20, 2020 | 1 hr 25 mins |
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Recent years have seen rapid growth green bonds and loans that promise positive environmental impact and a proactive response to climate change. Similar instruments are also emerging that seek social and sustainability impacts in line with the Sustainable Development Goals (SDGs). As investor demand increases for these types of offerings, and as the types of assets broaden, there is greater scrutiny of the definitions that are applied and the reporting by issuers on impacts they have achieved. At global level, a number of leading initiatives have emerged to offer agreed classifications that can underpin sustainable finance products. This taxonomy will influence global issuances that seek to comply with the requirements of European investors. Other global taxonomies and definitions of green bonds include the Climate Bonds Taxonomy by the Climate Bonds Initiative, the International Capital Markets Association Green Bond Principles eligible projects, and the IFC Definitions for Climate-Related Activities. In emerging markets, a growing number of SBN member countries are issuing either lists of eligible sectors and projects or more comprehensive taxonomies that include technical criteria and monitoring guidance. For example, China issued its first Green Bond Taxonomies in 2015 and went on to contribute to approximately 30% of global green bond issuance in 2016. The most recent country to adopt a national green taxonomy is Mongolia, which has been an active member of SBN since 2012. In December 2019, Mongolia completed an extensive consultation to develop a national taxonomy based on the China experience and other international good practices. This webinar shares latest development insights from key global initiatives, as well as an in-depth discussion of the Mongolia experience in designing a national taxonomy based on international good practice.
● Sean Kidney, CEO of the Climate Bonds Initiative (CBI)
● Nomindari Enkhtur, Advisor to the Mongolian Sustainable Finance Initiative (MSFA)
● Oyungerel Munkhbat, Project and Partnership Manager Mongolian Sustainable Finance Association (MSFA)
● Louise Gardiner, Africa and Green Bonds Coordinator, Sustainable Banking Network (SBN), IFC