Platform will bring greater transparency to the Latin American and Caribbean’s green bond market

SITAWI is one of the supporting institutions of the Green Bond Transparency Platform (GBTP), an innovative digital tool that will bring greater transparency to the Latin American and Caribbean’s green bond market. The announcement was made at an event hosted by the IDB during the UN Climate Change Conference (COP25), under the presidency of Chile, in Madrid, Spain.

The GBTP, which is expected to become a model for green bond markets in other regions, is supported by more than 30 organizations, among banks, non-profit organizations and development agencies. We were represented at the launch event by our Sustainable Finance Manager, Fred Seifert.

“In order to reduce greenhouse gas emissions by half over the next 10 years and to maintain the rise in global temperature by up to 2ºC, we need a large volume of resources. Green bonds are a very useful financial mechanism and its issuance has grown considerably over the years, but we still need a lot more. In this context, the platform, first of its kind in the world, offers a tool of great value that allows issuing agencies as well as investors to verify the characteristics of their bonds and their respective impacts. This should generate more standardisation in the characteristics expected of the bonds, greater convergence in the underlying investments, as well as an amplification of the potential impact of these financial instruments. The launch of such an initiative during one of the most critical COPs in history demonstrates its magnitude, which is proportional to SITAWI’s pride in supporting it”, said Seifert.

The innovative platform uses Blockchain (DLT) technology and is the first such tool to facilitate harmonized issuance reporting and verification. By accessing the platform, issuers, investors and other market actors can upload and research information on transaction details, bond performance, use of proceeds, and environmental impacts of the region’s green bond issues.

The platform, currently in its beta stage and set for official launch in 2020, will provide a greater level of confidence to current market participants and removes an important deterrent for the entrance of new market actors requiring greater transparency and comparability.

To know more about the Green Bond Transparency Platform, click here.