- New reporting on impact of projects financed by EIB green bonds includes GHG-savings
- Transparent information on alignment with new version of GBPs
- Coincides with ICMA publication of new edition of GBPs decided by GBPs ExCom
- EIB CAB issuance approaches EUR 8.5bn – making EIB largest issuer to date
Today, the European Investment Bank (EIB), the EU Bank, published new reporting, including the impact of projects receiving financial allocations from its green bonds and alignment of such bonds with the Green Bond Principles.
IMPACT REPORTING:
Investors have been eager to find quantitative metrics to evaluate the impact of their green bond portfolios. Today EIB not only joins a select group of issuers that tackle this matter, but also does so in exceptional detail. The reporting provides both aggregate and project-level data on important indicators such as GHG emission avoidance and absolute emission levels. The new report covers the impact of projects receiving allocations from EIB Climate Awareness Bonds issued in 2014.
This impact reporting has been made possible through the development over a number of years of a carbon-foot-printing methodology, which is systematically applied across all investment projects with material GHG emissions impact. Project-level environmental and social data has been systematically published on EIB’s website since 2014, and the today’s publication synthesizes the complex array of information available.
ALIGNMENT WITH GREEN BOND PRINCIPLES
EIB underlines its support for the Green Bond Principles through immediate transparency on alignment with the newly published GBPs. This illustrates EIB’s support for development of the green bond market, with proactive input as a Member of the Initial ExCom of the GBPs. It reflects EIB’s role as a bank driven by EU policy, which has been a pioneering force in the field of Climate Action.
Comments:
Bertrand de Mazières, Director General of Finance, EIB, said: “The new GBPs encourage issuers to transparently articulate their alignment with the new Principles, and this is what we are now offering with the EIB Newsletter just published. You’ll see that it articulates both the impact reporting and green bond alignment are articulated in the Newsletter just published. These reporting initiatives underline EIB’s vision that the market above all requires transparency to enable investors to make appropriate choices. Transparency is vital for catalyzing stronger flows of capital into finance furthering environmental goals.”
Eila Kreivi, Director and Head of Capital Markets, EIB, said: “Impact reporting has the potential to be a game changer. It extends the debate from qualitative preference to include achievement in environmental terms. The delivery of impact reporting is a prominent recommendation in the new GBPs, in tune with increasing attention from leading investors.”
The full newsletter is available via the following link:http://www.eib.org/attachments/fi/2014-cab-newsletter.pdf
Background
Renewable energy and energy efficiency – a top priority of the EU and EIB
A key instrument of EU public policy, the European Investment Bank is a market leader in the financing of projects tackling climate change worldwide. In 2014, the EIB dedicated over EUR 19bn, or 25% of its total lending activity, to climate action. Within this area, the EIB strongly supports Renewable Energy and Energy Efficiency, meaningfully contributing to the EU’s sustainability objectives. EIB’s overall lending in these areas in 2014 reached EUR 8.2bn.
Climate Awareness Bonds
CABs, EIB’s Green Bonds, provide investors with the opportunity to associate their investment with EIB’s lending in the areas of renewable energy and energy efficiency, while enjoying the excellent credit quality of EIB as an issuer.
The funds raised via these issues are earmarked to match actual disbursements to eligible projects. These projects include, but are not exclusive to, respectively:
- renewable energy projects such as wind, hydropower, wave, tidal, solar and geothermal production,
- energy efficiency projects such as district heating, cogeneration, building insulation, energy loss reduction in transmission and distribution, and equipment replacement with significant energy efficiency improvements.
EIB’s strict earmarking approach entails the ring-fencing of proceeds in a dedicated liquidity portfolio. Pending disbursements, the portfolio is invested in money market instruments. The EIB provides transparency on the allocation of CAB proceeds annually in its audited financial statements and sustainability report as well as in a dedicated Climate Awareness Bonds Newsletter.
EIB first CAB pioneered the Green Bond segment in 2007 and is the largest issuer of Green Bonds to date. In September 2014, together with other MDBs, the Bank committed to maintaining a developmental role in order to spur further sustainable growth of the green bond market. This comprises new reference issuance as well as active engagement in the market- based definition of minimum requirements, best practice and governance.
Background information on EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The Bank’s strong credit standing is underpinned by exceptional asset quality, a strong capital base, firm shareholder support, conservative risk management and a sound funding strategy