Sustainable Banking Network Launches First Green Bond Report
“Creating Green Bond Markets – Insights, Innovations, and Tools for Emerging Markets” presents the key findings from research conducted by IFC and the Climate Bonds Initiative (CBI) in 2018, on behalf of SBN. It captures insights in over 22 emerging markets to unlock issuance of green and sustainability-themed bonds as a powerful new financial instrument for positive impact, and share best practices and lessons learns on building national green bond markets.
The Green Bond Report offers the first ever practical “Green Bond Market Development Toolkit” for emerging markets, including Common Objectives, a Self-assessment and Planning Matrix, a Roadmap with Common Milestones, and a Capacity Building Needs Assessment. Together these spell out the steps SBN members can take to develop strong local green-bond markets.
Access the SBN Global Progress Report and Country Reports at www.ifc.org/sbngreenbond
The Sustainable Banking Network (SBN) is a unique community of financial sector regulatory agencies and banking associations from emerging markets committed to advancing sustainable finance in line with international good practice. The Network facilitates the collective learning of members and supports them in policy development and related initiatives to create drivers for sustainable finance in their home countries.
The idea for the SBN arose during the first International Green Credit Forum, hosted by IFC and the China Banking Regulatory Commission, in Beijing in May 2012, where banking regulators and associations from 10 countries requested that IFC facilitate a global knowledge network on sustainable banking. The Network was formally launched in September 2012.
The Network is entirely voluntary, and participating regulators and banking associations have the freedom to get involved in ways that best help them meet their goals. A defining characteristic of the SBN is the practicality and openness with which members are collaborating to share knowledge.
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As capital providers, banks are ideally placed to help the private sector adapt to new economic realities linked to environmental and social (E&S) sustainability – such as climate change, changing communities, and increased resource scarcity – and to contribute to national sustainable development agendas. However, for banks to effectively integrate new practices in E&S risk management and green and inclusive lending, they require an enabling regulatory context that ensures a level playing field and provides the right economic incentives.
With this in mind, a growing number of emerging market banking regulators have started to team up with partner agencies to pioneer the development of regulatory guidance that encourages local banks to adopt sustainable banking practices. This includes more effective management of E&S risks in the projects they finance and support for businesses that are greener, climate friendly and socially inclusive.
To date, 15 countries have launched national policies, guidelines, principles, or roadmaps focused on sustainable banking. They include Bangladesh, Brazil, China, Colombia, Indonesia, Kenya, Mexico, Mongolia, Nigeria, Peru, Turkey and Vietnam. The SBN gives the institutions that are working on these initiatives a space to exchange experience, gain knowledge, and collectively drive the agenda of sustainable banking forward.
The annual SBN meetings, implemented since 2012, are the principal space for dialogue, networking and knowledge generation. These conferences are hosted by a different member country each time and have been implemented in cooperation with the IFC. Members are also invited to participate in IFC-hosted dialogue events and expert groups, such as the annual Performance Standards Community of Learning gathering for financial institutions that have adopted the Equator Principles. These events provide the opportunity for dialogue with leading commercial banks worldwide, which plays a crucial role in the development of regulatory guidance.
SBN currently has two thematic working groups:
Member-led Measurement Working Group: Established in December 2016, it includes 14 members from 11 countries, The Measurement Work Group developed a Measurement Framework and tools for benchmarking country progress and strategies in sustainable finance. The Global Progress Report and country reports were launched in February 2018. The reports could be found at www.ifc.org/sbnreport.
Member-led Green Bond Working Group: Established in December 2017, it aims to support members to develop green bond markets and facilitate increased flow of international and domestic investment to achieve national sustainable development goals. The Working Group includes 30 members from 21 countries. The Working Group launched its first research report “Creating Green Bond Market – Insights, Innovations, and Tools from the Emerging Markets” in September 2018. The reports could be found at www.ifc.org/sbngreenbond.
Partners and donors that are supporting the SBN and its activities include the government of China through the Ministry of Finance, the government of Switzerland through the State Secretariat for Economic Affairs (SECO), and the government of UK through the Department for International Department (DfID).
Government of the People's Republic of China through the Ministry of Finance
Government of Denmark
Government of Japan through the Ministry of Finance
Government of Switzerland through the State Secretariat for Economic Affairs (SECO)
Department for International Development (DfID), United Kingdom
SBN Contact: SBN Secretariat – SBN_Secretariat@ifc.org
Media Contact: Kathryn Graczyk – KGraczyk@ifc.org
Short URL for this page: www.ifc.org/sbn