Green bonds are vehicles for raising funds which are invested in projects with positive environmental and sustainability impacts.
Issuing a green bond has demonstrated Auckland’s commitment to sustainability and leadership in promoting the development of the Green Bond market in New Zealand.
By entering a rapidly growing market, which is projected to be worth USD $250-$300bn this year alone, Auckland Council has sent a signal to the rest of New Zealand that smart financial management can go hand-in-hand with sustainable investment and greener outcomes”. It is a clear statement that Auckland is committed to investing in low emissions technology and protecting our environment.
What is the innovation? How does it work?
Auckland Council has obtained certification for the Green Bonds from the Climate Bonds Initiative. The certification means that the Green Bonds meet the criteria set out in the Climate Bonds Standard. All Council’s investments are intended to generate long-term, positive environmental, social and/or economic outcomes for the region. However, issuing a green bond adds a level of rigour and verification that the outcomes we achieve through our investments are ‘green’.
The process of defining and selecting green assets for inclusion in the green bond portfolio is independently verified, as are the positive environmental outcomes delivered by these assets.
What are the CO2 reduction goals?
Auckland Council’s 10-year Budget and the Auckland Plan 2050 both recognise the importance of protecting and enhancing the natural environment for Aucklanders, and this is a further step towards that goal. Auckland Council is also committed to a low carbon future that prepares us for the increasing threats and challenges that our changing climate will bring.
Green bonds will allow Auckland Council to diversify the pool of funds available by bringing in investors who wish to fund ‘green’ infrastructure assets and projects.
Auckland Mayor Phil Goff says, “Auckland must be an environmental leader and with billions of dollars being invested in Auckland’s infrastructure over the coming decade, we are embracing an environmentally friendly way to generate revenue and protect our environment as our city grows”.
Links to Further Information
Principal Specialist Corporate Sustainability
Chief Sustainability Office
- Key Impact
- The funds raised will be used to finance electric trains and associated infrastructure. Electric trains benefit public transport users with a cleaner and more efficient service, and it will help Auckland meet its commitment to lower carbon emissions
- June 2018