• Home
  • News
  • In-depth
  • Opinion
  • Energy
    • Wind
    • Marine
    • Solar
    • Biomass
    • Nuclear
    • CCS
    • Infrastructure
  • Policy
    • Politics
    • Legislation
    • Taxation
  • Management
    • Marketing
    • Risk
    • Skills
    • Incentives
    • Carbon Accounting
  • Technology
    • Waste
    • Recycling
    • R&D
    • Efficiency
    • IT
  • Investment
    • Carbon Trading
    • Offsets
    • Venture Capital
  • Net Zero Now
  • Events & Awards
  • SDG Hub
  • Industry Voice
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    • You are currently accessing BusinessGreen via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • Facebook
    • YouTube
    • Instagram
  • Free Trial
  • Subscribe
  • Events & Awards
    • Upcoming events
      event logo
      NZF Pathway - Finance

      This exclusive half day online event will investigate how all businesses can support and accelerate the transition to low and net zero carbon buildings, while maximising the financial and productivity opportunities that will result.

      • Date: 16 Mar 2021
      • Online Event
      event logo
      Net Zero Festival 2021

      Net Zero Festival is the world's first business festival dedicated to exploring, advancing, and celebrating the global transition to a net zero emission economy. Join us at BusinessGreen's Net Zero Festival – for leaders who won't wait until 2050 to build a better business, and a better world.

      • Date: 28 Sep 2021
      • Worldwide
      View all events
  • SDG Hub
Business Green
Business Green
  • Home
  • News
  • In-depth
  • Opinion
  • Energy
  • Policy
  • Management
  • Technology
  • Investment
  • Net Zero Now
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  • You are currently accessing BusinessGreen via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
  • Hot topics
  • Carbon offset markets
  • Green aviation
  • Deforestation
  • Net Zero Finance
  • Investment

'Significant game-changer': How Transition Bonds could help heavy industries clean up their act

'Significant game-changer': How Transition Bonds could help heavy industries clean up their act
  • Tom Gockelen-Kozlowski
  • 09 September 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

New report from Climate Bonds Initiative and Credit Suisse proposes new standards for emerging Transition Bonds category

A new financial framework to help investors support the transition to a low carbon future, while tackling potential 'greenwashing' within the fast-expanding green finance sector, has been published this week by Credit Suisse in partnership with the Climate Bonds Initiative.

The new 'Financing Credible Transition' report proposes a mechanism for enabling the rapid expansion of the embryonic transition bond market, which aims to raise funds for companies in the highest emitting industries to help them transition to lower carbon technologies and business models.

Related articles

  • Race to Zero: UN campaign seeks to catalyse industry breakthroughs in pursuit of net zero emissions
  • 'Climate Day': President Biden sets course for 'climate neutrality' with raft of executive actions
  • Wildlife Trusts consider legal challenge against Defra authorisation of neonicotinoids
  • 'Significant changes': Government publishes updated Waste Management Plan

The green bond market has grown rapidly in recent years, providing companies and governments with a means for securing capital for green infrastructure or corporate transformation projects. Germany last week provided a further boost to the green sovereign bond market, raising €6.5bn to support its new green stimulus plan.

However, green bonds issued by carbon intensive companies have faced criticism from some investors and campaigners, who have alleged that investments that are labelled 'green' have been used to fund projects from high carbon industries.

The emerging transition bond is seeking to tackle this issue, by allowing higher carbon firms to issue bonds that would support their efforts to move towards lower carbon business models. Earlier this year, gas distributor Cadent issued the UK's first transition bond raising €500m to support efforts to tackle methane leakage and upgrade its networks to make them ready for the use of hydrogen and other green gases. 

Now Credit Suisse and the Climate Bonds Initiative are seeking to provide a further boost to the nascent market with the publication of a paper they said would "assist in the mobilisation of global capital flows towards activities which enable the transition to a Paris Agreement-aligned economy".

"While much of the focus on the capital markets has rightly been on green and sustainability bonds, we see transition bonds as being a significant game changer in terms of broadening the universe of issuers who can begin to transition towards sustainability," said Marisa Drew, chief sustainability officer and global head of sustainability strategy, finance, and advisory at Credit Suisse. "This paper represents an important milestone in the development of the sustainable finance markets and one which helps us all transition to a low-carbon economy."

The paper proposes that to ensure transition bonds help drive down emissions and avoid accusations of 'greenwash' a set of standards should be established for the emerging sector. These would include demonstrating that investments are aligned with a net zero emissions by 2050 goal and a near halving of emissions by 2030, are led by scientific experts, exclude carbon offsets, and are backed by clear metrics rather than commitments or pledges.

Climate Bonds Initiative's CEO Sean Kidney said the move to transition bonds represents a vital next step as the global economy moves towards a net zero economy. "We have a tough job ahead to achieve our Paris Agreement targets and avoid catastrophic climate change," he said. "We've started, with clean energy, electric vehicles and of course green finance. Now we must tackle hard to abate sectors, like steel, oil and gas, plastics and cement. We need to transition them, quickly.

"This paper sets out the pathways for that transition investment market to grow."

 

The Net Zero Investment Hub is brought to you in partnership with Schroders, as part of its support for the world's first Net Zero Festival this autumn. All the content on the Hub is fully editorially independent unless otherwise stated.

You can find out more about the Net Zero Festival and reserve your place here.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Investment
  • Investment Hub
  • Green Bonds
  • Transition Bonds
  • Climate Bonds
  • Climate Bonds Initiative

More on Investment

The measures could see all large pension schemes having to disclose their climate risk by 2025
    • Investment
'A positive start': Government unveils climate risk rules for UK pensions sector
    • Investment
    • 27 January 2021
BlackRock has announced plans to step up its net zero efforts
    • Investment
'No issue ranks higher than climate change': BlackRock CEO presses firms to pursue net zero emissions
    • Investment
    • 26 January 2021
    • Investment
Pioneering distributed renewables investment platform aims to boost off-grid energy access
    • Investment
    • 26 January 2021
Decarbonising heavy industrial emitters is seen as a major challenge in the net zero transition
    • Investment
Podcast: How mobilising capital markets could drive decarbonisation of heavy industry
    • Investment
    • 22 January 2021
Tesco is targeting net zero emissions in the UK by 2035
    • Investment
Tesco issues €750m bond linked to science-based climate goals
    • Investment
    • 21 January 2021
    • Investment
Has Covid-19 changed the conversation around sustainable investing?
    • Investment
    • 20 January 2021
Banque de France in Lille | Credit: Velvet
    • Investment
French central bank vows to cull coal and cap oil and gas investment by 2024
    • Investment
    • 19 January 2021
Glennmont Partners invests in wind, biomass, solar and small-scale hydro power plants | Credit: Charles Cook
    • Investment
Nuveen agrees to acquire specialist renewables investor Glennmont Partners
    • Investment
    • 19 January 2021

More news

Race to Zero: UN campaign seeks to catalyse industry breakthroughs in pursuit of net zero emissions
  • Management
Race to Zero: UN campaign seeks to catalyse industry breakthroughs in pursuit of net zero emissions

New partnerships will aim to drive progress across seven carbon-intensive industries, including shipping, aviation, and steel

  • 28 January 2021
'Climate Day': President Biden sets course for 'climate neutrality' with raft of executive actions
  • Policy
'Climate Day': President Biden sets course for 'climate neutrality' with raft of executive actions

New actions aim to reorient US energy policy towards clean power sources, while directing federal agencies to procure clean energy and zero-emissions vehicles

  • 27 January 2021
Wildlife Trusts consider legal challenge against Defra authorisation of neonicotinoids
  • Policy
Wildlife Trusts consider legal challenge against Defra authorisation of neonicotinoids

The Wildlife Trusts are exploring whether a 2018 decision from the UK Expert Committee on Pesticides could enable a legal challenge

  • 27 January 2021
'It will kill businesses eventually': Are administrative problems scuppering the Green Homes Grant scheme?
  • Efficiency
'It will kill businesses eventually': Are administrative problems scuppering the Green Homes Grant scheme?

Complaints from households and installers are becoming ever more vocal, and now some fear the high profile scheme could lead to the collapse of some businesses

  • 27 January 2021
blog comments powered by Disqus
Back to Top

Most read

HyNet: First industrial boiler fired up with hydrogen at pioneering pilot project
HyNet: First industrial boiler fired up with hydrogen at pioneering pilot project
'World's most sustainable companies': Schneider Electric, Ørsted, and Banco de Brasil top annual list
'World's most sustainable companies': Schneider Electric, Ørsted, and Banco de Brasil top annual list
'Shocking': Overfishing tips UK cod, herring, and crab stocks into 'critical state'
'Shocking': Overfishing tips UK cod, herring, and crab stocks into 'critical state'
Mark Carney's carbon market plan puts polluters above the planet
Mark Carney's carbon market plan puts polluters above the planet
'Unpacked': Packaging-free shopping forges ahead as Waitrose launches expanded trial
'Unpacked': Packaging-free shopping forges ahead as Waitrose launches expanded trial
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • Facebook
  • YouTube
  • Instagram

Incisive Footer Logo

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading