CICERO - Center for International Climate Research

CICERO rates Asia's first national green bond framework

News - News from CICERO

Published 24.01.2018

Indonesia is about to issue its first sovereign green bond. It is the first national green bond in Asia, showing that awareness of green finance is growing in the region. CICERO provided an independent review of Indonesia's framework.

“Asia is an important growth market for green bonds. It is encouraging that Indonesia - one of the largest emerging markets, is going to issue a sovereign bond to finance its transition to a low-carbon economy. We expect this will kick off the national market,” said Harald Francke Lund, who leads CICERO’s work on green bonds.

Indonesia is the fourth most populous country in the world. It is a heavy emitter and is highly vulnerable to extreme weather because of climate change. Indonesia is also a key player in the international climate action.

CICERO reviewed Indonesia's green bond framework  and rated it medium green.

“The Green Bond and Green Sukuk Framework is aligned to support the Republic of Indonesia's climate targets [Nationally Determined Contribution to the UNFCCC], covering a broad range of mitigation and adaptation project types” said Christa Clapp, a research director at CICERO.

"We are looking forward to seeing the first sovereign green sukuk soon," Clapp added.

“We have devoted time in the region to raise awareness about how to come to market with a green bond or sukuk,” said Kristina Alnes, senior advisor at CICERO. For this, CICERO partners with international organisations such as the World Bank,  UNDP and the German GIZ.

CICERO is an award-winning independent reviewer of green bonds that counts the reviews of many green bond market ‘firsts’: the first green sukuk issued by Tadau Energy in Malaysia; the first green city bond issued by Gothenburg, Sweden; the first green corporate bond issued by Vasakronan; and the first green bond issued by the World Bank, as well as the world's largest bank - ICBC of China.

In 2017, CICERO reviewed over 30 green bonds, worth 21 billion USD.

For a list of CICERO's second opinions, click here.