New platform for green bonds

Regulation & Policy, Renewables    Apr 30, 2021 2:44 PM

The Inter-American Development Bank (IDB) and IDB Invest announced the launch of the Green Bond Transparency Platform (GBTP).

The entity explained that this is an innovative digital tool that provides greater transparency to this market in Latin America and the Caribbean, El Nuevo Siglo reported.

GBTP promotes the harmonization and standardization of information on green bonds, increasing investor confidence that the income generated by these instruments will be used in green projects.

Investors can get data on the performance, impact, and methodologies of each green bond in the region on the platform. In addition, they can use filters to visualize environmental performance using different criteria.

IDB highlighted that this online tool supports its efforts to scale the green bond market in the region and allows governments, financial institutions, and companies to access the financing they need.

Globally, the green bond market reached a record issuance of US$1.1T in 2020. Latin America and the Caribbean represent only 2% of this market, which reveals a strong potential for growth.

Since 2016, the IDB Group has provided strong support to the region’s green capital market, accompanying more than 30% of the issues in terms of volume.

“More transparency is essential to increase the investors’ confidence in Latin America and the Caribbean. Therefore, they will be willing to increase their investments in the region,” said Juan Antonio Ketterer, Head of the Division of Connectivity, Markets and Finance of the IDB.

Ketterer said that the GBTP is the first tool that offers accessible and comparable information free to all those interested in participating in the market.

Bottom-Line: Green bond issuance is starting in the region, and local authorities should be trained in these tools and promote them, as this market represents great opportunities. This aligned with the boom in renewable energy can be a strong driver of the economy in the country.

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