AMWA is collecting comments from members on a draft green bonds standard developed by the non-profit Climate Bonds Initiative. The Initiative released the draft - Water Climate Bonds Standard, Defining Expectations for Water-Related Climate Bonds in a Dynamic Climate - last November. Participating in its development were four other groups: Ceres, the World Resources Institute, CDP and the Alliance for Global Water Adaptation. According to a Ceres press release, the draft was developed by a technical working group of “internationally recognized” academics and experts and an industry working group of investors, public utilities, water NGOs and international policy bodies.
The draft standard is presented as a screening tool for water projects to be evaluated across mitigation and adaptation “themes.” The draft indicates that the purpose of the screening tool is to “maintain credibility in the green bonds market.” It specifically calls out different types of projects that are potentially eligible for evaluation under the standard including water efficiency, watershed restoration or large-scale infrastructure projects.
The proposed standard is part of a broader climate bonds standard taxonomy previously produced by the Climate Bonds Initiative to provide sector-specific guidelines for projects that can be funded by climate bonds and/or green bonds. The draft standard distinguishes climate bonds from green bonds, noting that climate bonds are specifically used for projects that aim to reduce or avoid greenhouse gas (GHG) emissions or increase adaptation to climate change. Green bonds are defined as those used for projects with environmental benefit, which may or may not include projects that enhance climate adaption or reduction of GHGs.
AMWA members with comments on the draft standard are encouraged to send them to Erica Brown by February 9 for consideration to be included in the association’s comment letter.