The Brazilian Business Council for Sustainable Development (CEBDS) announces that it has just signed an agreement with GIZ – a German government cooperation agency that offers sustainable solutions in processes of economic, social and political change – and with SEB – a Swedish bank involved in financing the transition to a green economy – to promote the debate on green bonds in Brazil. Green bonds are debt securities that require that the funds raised be invested in sustainable projects, such as clean and renewable energy infrastructure, sustainable housing, green transportation, water conservation, etc. The project was launched in Frankfurt, Germany, during the symposium Greening Financial Decision Making – Financing the Green Transition.
“We have no doubt that green bonds have great potential. This new market is experiencing substantial gains in business volume and capital allocation worldwide. The resources earmarked for the transition to a green economy will be crucial to enabling low-carbon solutions on a large scale,” commented Marina Grossi, president of CEBDS. For her, despite the crisis the country is going through, this is a good time to start preparing companies for the future issuance of these bonds and to overcome resistance, because when the economy starts growing again, the market will be ready.
She points out, for example, that the Securities and Exchange Commission has not yet regulated these securities, but that work needs to be done in this direction. “Green bonds are still a very small part of the debt market, but they are growing among investors, who can now build their portfolios more responsibly,” she reflected.
This green bond dissemination project, led by GIZ, involves all G20 countries and, in the case of Brazil, is gaining momentum after the project was launched with CEBDS. “Among the main activities included in the partnership is the holding of workshops with potential bond issuing companies, auditors and financial institutions,” explained the president. She also said: “Many of our members are interested in learning about and using this modality that gives visibility to actions related to sustainability.”
According to the Climate Bonds Initiative, the green bond market took off in 2014, with US$36.6 billion issued, triple the amount issued in 2013 (US$11 billion).
