In Conversation with Mr. Sandeep Bhattacharya India Projects Manager Climate Bonds Initiative
Can you tell us about Climate Bonds Initiative and the work it does?
The Climate Bonds Initiative is an investor focused international organisation, with a mission to mobilise the USD 100 trillion global bond market for climate change solutions.The work output of Climate Bonds is an open source for public good falling into three work streams:
- Market Tracking and Analysis of the green bond market
- Developing Standards for ‘green’ and an assurance framework for investors
- Providing policy models and advice on green finance strategies and how to scale up green bond markets
Through this model, Climate Bonds Initiative helps to promote investment in projects and assets necessary for a rapid transition to a low carbon and climate resilient economy.
For which all sectors standards available?
We have prepared standards for Solar, Water, Wind, Geothermal, Marine Renewable energy, Low Carbon Transportation and Low Carbon Buildings, and are in the process of preparing standards for Bioenergy , Land use , Hydropower and Waste management.
Which entities in India have issued certified Bonds ?
Certified Bond issuances out of India include Hero Future Energies, Axis Bank , Renew Power . NTPC, IREDA, REC and Azure Power.
What other activities are being done in India ?
Among the activities that we are working on now are making the right connections with funds in India, to be able to start a “Green Only” fund for AMCs as well as some Alternative Investment Funds looking at niche segments.
We have teamed up with FICCI , and have set up the India Green Bond Council, which is a good platform to address policy issues. We have held events that have dwelt on regulatory and policy issues, including a high level – round table that discussed the Green Bond Guidelines issued by SEBI.
Can you tell us about some interesting projects?
One of our current projects is the Climate Aggregation Platform ( CAP).We are the implementation partner of UNDP for the ( CAP). The CAP aims to help build pipelines of standardised, low-carbon energy assets in developing countries and to develop low-cost sources of financing for these assets, tapping new and diverse investor bases.
The program has three thrust areas of South Asia, East Africa and Latin America The Inter-American Development Bank will be a core partner in demonstration transactions.
The CAP will be structured around three core activities:
- A global working group, to promote engagement and coordination amongst key finance and industry stakeholders.
- Promoting the standardisation essential to aggregation.
- In-country demonstrations and providing technical support for pilot transactions, to build pipelines and achieve scale.
Aggregation is important to allow developing country financial institutions, from banks to micro-finance lenders, to make the most of their limited balance sheets. The aggregation, or bundling together, of small loans and assets aims to create investment products that meet the large-scale needs of institutional investors including global pension funds and insurance funds. Effective financial aggregation holds out the promise of opening up new finance & investment channels, both domestic and between North and South.