Green Bond Flashcards
(57 cards)
What is the role of Green Finance in risk management?
Helps manage climate-related risks while capitalizing on sustainable investment opportunities.
Define Green Finance.
Financial investments flowing into sustainable development projects and initiatives.
What are the key terms associated with Green Finance?
- Climate finance
- Sustainable finance
- ESG investing
What are the characteristics of Green Finance approaches?
- Transparency through detailed reporting
- Verification by third parties
- Measurable impacts on environmental targets
- Additionality
- Alignment with international frameworks
What challenges does Green Finance face?
- Greenwashing
- Measurement difficulties
- Standardization issues
- Data reliability
What opportunities does Green Finance present?
- New market segments
- Innovation in financial products
- Regulatory incentives
- Meeting growing investor demand
What are the UN Sustainable Development Goals?
17 goals adopted in 2015 providing a blueprint for sustainable development by 2030.
Which SDGs are particularly related to Green Finance?
- Climate Action (Goal 13)
- Affordable and Clean Energy (Goal 7)
- Life Below Water/On Land (Goals 14/15)
What are key milestones in the development of Green Finance globally?
- First green bond issuance by the World Bank (2008)
- Creation of Green Bond Principles (2014)
- Paris Agreement (2015)
- EU’s Sustainable Finance Action Plan (2018)
What does the carbon budget concept indicate?
How much more CO₂ can be emitted while limiting warming to specific targets.
What are the types of financial risks associated with climate change?
- Physical risks
- Transition risks
- Liability risks
What are some opportunities for finance in the context of climate change?
- Financing renewable energy
- Energy efficiency
- Sustainable agriculture
- Climate adaptation projects
What is the purpose of Green and Sustainability-linked Debts?
To finance specific environmental projects and improve sustainability performance.
What are the four key components of Green Loans?
- Use of proceeds
- Process of project evaluation
- Management of proceeds
- Reporting
What types of bonds are included under Green Bonds?
- Climate bonds
- Blue bonds
- Social bonds
- Sustainability bonds
What is the Green Bond Principles?
Voluntary guidelines on use of proceeds, project evaluation and selection, management of proceeds, and reporting.
What role do Asset-Backed Securities play in Green Finance?
Pool smaller green loans to create investment-grade securities.
What is ESG investing?
Investing that considers Environmental, Social, and Governance factors alongside financial returns.
What are some examples of equity products for Green Finance?
- Green stocks
- Cleantech equities
- ESG-screened indices
- Thematic ETFs
What types of investment funds support Green Finance?
- Green mutual funds
- ESG index funds
- Environmental thematic funds
- Green ETFs
- Green private equity/venture capital
What is Greenwashing?
False environmental claims made by companies.
What is the significance of the Climate Bonds Standard?
Ensures that financial products are certified and consistent with the Paris Agreement’s warming limit.
What are the Equator Principles?
Voluntary risk management framework for financial institutions.
What is the Green Climate Fund (GCF)?
The largest climate fund globally.