By virtue of its world-class financial expertise and global reach
What are the key features of green bonds?
Transparency, product accreditation by a credible third party, and regular reporting, are collectively referred to as the ‘green principles’. Investors need to see the impact their investment is having if the issuer promised environmental benefits. Second opinions and regular reporting can incur a cost, but typically no more than 1 bps on a transaction. The market will fail if it is perceived as a fix.
Why is London the place for green finance?
By virtue of its world-class financial expertise and global reach, London is already amongst the premier venues for the provision of green services. It has also witnessed a number of firsts – from issuance of the first renminbi- and rupee-denominated green bonds to the work of the world-leading Green Investment Bank.
London did not invent the green finance sector, but London can help to internationalise the sector. This will be crucial for governments everywhere to be able to attract the private funds they need in order to meet their environmental commitments.