Asset Pools : Bonds

Bonds are the largest single asset class in the financial system, currently valued at about US$100 trillion. They are an important means of raising long-term debt, particularly for assets with relatively predictable risks and returns. There are two interlinked public policy priorities for bonds:

Enable the growth of green bonds: Green bond markets are growing, however they require credible and ultimately verifiable standards to ensure market integrity. Other measures include developing the pipeline of green bonds, aggregating and sececuritising smaller projects and improving returns through tax credits and incentives.
Greening of bond markets: Mainstream bond markets should integrate environmental, social and governance factors into routine credit ratings.

Inquiry Publications

Aligning the Financial System with Sustainable Development in the United States of America

Date: 01-Feb-2016

The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining
China Green Finance Task Force Report: Mandatory Disclosure

Date: 02-Apr-2015

This paper makes the case that compulsory disclosure of environmental information by listed companies and bond issuers is an effective measure to increase the sense of corporate social responsibility, improve corporate environmental performance, incentivize investors to refrain from polluting investments and strengthening green investments. It recommends: CSRC and stock exchanges formulate rules on compulsory environmental
China Green Finance Task Force Report: Green Bonds

Date: 02-Apr-2015

Green bonds provide a potential source of long-term funding for green loans which reduces the risk of maturity mismatch. This paper recommends that China should commence the pilot issuance of green bonds at the earliest possible date to support the green lending business of banks. Specific recommendations are: Create a clear standard to define the scope of investment
China Report: Greening China’s Bond Market

Date: 06-Oct-2015

This reports rovides an overview of the green bonds theme, innovative structures in the international market and potential application in China. A key message is that green finance, in addition to providing a green benefit, can assist in implementing and enforcing financial reforms that address imbalances in China’s financial system. Another message is that providing