Climate Bonds, SITAWI Launch “State of the Market Brazil Edition” on climate change bond finance

Por Jim LaneState of the Market

In Brazil, the Climate Bonds Initiative, in partnership with SITAWI, will launch ‘Bonds and Climate Change: The State of the Market in 2016’ Brazil Edition.  The launch will take place in conjunction with the ‘New Economy for Brazil Post COP 21’ forum.

The report analyses the Brazilian green and climate-aligned bond market, outlines green bond and capital market development options and identifies policy opportunities that can assist in the transition to a low-carbon climate-resilient economy.

The report’s found that  the total climate-aligned bonds universe stood at USD 2.4bn of which 23% were ‘labelled’ green bond. Transport bonds linked to rail (such as public transit, urban and metro, freight and related construction) made up the single largest component of outstanding bonds at 54%, with the rail freight component a dominant sub-section at 46%. At 23%, energy made up the next largest sector, comprising a mix of wind and renewables (small scale hydro, solar and biomass). The largest mixed renewables issuer was CPFL Renováveis. The remaining 23% comprised a multi-sector USD 549m labelled green bond issued by the food company BRF. Its proceeds went to water and electricity efficiency projects, lowering carbon emissions and waste.

The report also noted the $500m debut green bond from Suzano Papel e Celulose issued after the May 2016 analysis cut-off.