On February 12, AMWA submitted comments to two organizations on their proposed methodologies for assessing green and climate bonds. In a letter to Moody’s Investor Service about its proposed Green Bonds Assessment (GBA) Proposed Approach and Methodology, AMWA noted that although the GBA methodology is not a credit ratings methodology, Moody’s should, in the final document, describe how it would be used in the context of a bond rating. AMWA’s letter also urged Moody’s to respond to nearly 20 questions the association has about the GBA. These questions include how Moody’s will weigh certain criteria and how an issuer would be expected to conduct ongoing reporting during the lifetime of the bond.
In a letter to the Climate Bonds Initiative on its draft Water Climate Bonds Standard, AMWA remarked that while the green bond and climate bond market can be beneficial in calling more attention to the water sector as one that is good for investment, the association still has questions about “who the investors are, and whether they would support this standard, particularly for U.S.-based water utility projects that by nature under the Green Bond Principles could already obtain a ‘green’ label.” The letter also provides comments, observations and clarifying questions about the draft in light of “any anticipated implementation of the standard by U.S.-based municipal water utilities.”