Commerzbank has joined the Climate Bonds Initiative Partnership Program, effective January 2020, marking a new step in the bank’s commitment to sustainability. The international NGO, in which more than 100 global partners from across the financial sector participate, aims to contribute to a CO2-efficient and climate-resilient economy via the global bond market.
Climate Bonds are a part of the Green Bond market. In order to issue a Climate Bond according to the definitions of the Climate Bonds Initiative, the issuer must demonstrate that the proceeds of the bond reduce climate-damaging CO2 emissions or increase the climate resilience of the economy. In 2019, Green Bonds were issued with a volume of more than €230bn. Of these, in the region of 80% were in line with the definitions of the Climate Bonds Initiative.
“The financial market plays a key role in the fight against climate change,” said says Roman Schmidt, head of Commerzbank’s Capital Markets business. “The Climate Bonds Initiative makes an important contribution to securing the credibility, transparency and traceability of the sustainable bonds market. Partnering with the Climate Bonds Initiative provides an opportunity for Commerzbank to cooperate at many levels with a leading international proponent of green finance activities.”
“We are delighted to welcome Commerzbank to our partners network,” commented Manuel Adamini, Head of Investor Engagement at the Climate Bonds Initiative. “As an active participant in green finance and low carbon projects worldwide for many years, their market experience is widely acknowledged. Commerzbank’s deep understanding of the German Energiewende (energy transition) will help in transferring lessons learned into other areas still to undergo transition in the face of the escalating climate crisis.”
Commerzbank has a long history of expertise in the business of sustainable and green bonds. In 2007 Dresdner Bank, which was integrated into Commerzbank, lead managed the first ever Green Bond issue by the European Investment Bank (EIB). Commerzbank has been a signatory of the Green Bond Principles since 2014. These guidelines define a voluntary standard for the issuance process of green bonds and promote standardisation, integrity and transparency in the market for Green Bonds. In October 2018, Commerzbank launched its first own Green Bond. The issue volume was €500m. The five-year bond is used to refinance renewable energy projects.
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