Carbonsink partner Climate Bond Initiative

The fight against climate change is one of the most important global challenges ever. Finding a solution to the unpredictable consequences of climate change affects everyone, and the action of governments and institutions can no longer suffice. An unprecedented contribution from the private sector is crucial for sustainable long-term growth.

In this context, the financial sector can play a leading role in a sustainable economy. Finance has always supported markets by making capital available to the real economy, and it is mainly responsible for so-called economic and employment growth. The investment is based on multiple types of factors, but today too often factors relating to climate risks are not taken into due consideration.

Carbonsink consulting company specializing in the development of climate change mitigation strategies since 2011, thanks to the experience gained over the years in the Carbon Management and Climate Finance sector, and in the implementation of climate change mitigation projects, has become a leader in Italy , and internationally recognized subject, with regard to the management of climate risks and the development of projects in line with the United Nations Sustainable Development Goals.

Carbonsink believes that Climate Finance should be considered an indispensable tool for accelerating climate action and making progress on risks and opportunities associated with climate change, and is therefore proud to sign a partnership with Climate Bond Initiative (CBI), the association London non-governmental organization that has become the leader and reference point for the green bond sector, and the main institution focused exclusively on investors to deal with climate mitigation.

Green bonds can be financial instruments of Climate Finance, considered a real investment vehicle for the process of decarbonising companies. From 2007 to today in Europe, thanks also to the support of the European Community which has defined the first action plan on sustainable finance and which intends to create a unified system (taxonomy) to provide clarity and orientation regarding the activities to be considered sustainable and useful for climate change mitigation, there are about 144 green bond emitters totaling over 122 billion euro. With over 2.9 billion euros invested, an eight-fold increase compared to 2016, 2017 in Italy was considered the year of green bonds, it is estimated that more than half of the issuers made their debut in 2017.

The main issuers belong to companies in the energy sector, financial institutions, real estate companies, local and supranational administrations. The diversification between types of issuers is certainly a goal, but despite the green bonds are becoming a mainstream phenomenon, it is necessary to increase the commitment of the private sector. Companies that decide to invest in sustainable projects and activities by issuing the so-called "green bonds" provide a concrete answer to the increase in demand from investors for a concrete environmental commitment and an effective Climate Action.

A Climate Bond can be considered an extension of the concept of Green Bond, issued in order to increase funding for a wide variety of environmental sustainability projects; the so-called Climate Bond, on the other hand, are issued with higher targets to collect funding for climate change adaptation and mitigation. Investors 'demand for climate bonds is strong and will increase, but along with demand, investors' concerns about the credibility and transparency of the "climate" label are also growing.

For all these reasons Carbonsink is proud to be at the side of the Climate Bond Initiative, thanks to the standard (Climate Bond Standards), taxonomy (Climate Bonds Taxonomy) and certification (Climate Bonds Certification) is committed to improve transparency and integrity, and support the growth in the market of these new financial instruments. Therefore, only the bonds certified by the Standard can be considered "Climate Bond", Climate Bond Standards is in fact able to facilitate decision-making and focus attention on opportunities for concrete solutions for climate change, and ensure that projects are in in line with the Paris Agreement and with the aim of limiting global warming to 2˚.

Carbonsink thanks to the experience gained in the private sector with the partnership with the organization Carbon Disclosure Project (CDP) and in the financial sector through the use of the main mechanisms of Climate Finance has decided to combine the two things by applying its experience in the Climate Change to the green bond market. "Working with Climate Bond in Italy was a natural process for Carbonsink" underlines Vincent Reulet, Head of Advisory Services at Carbonsink "a collaboration between two very similar and highly specialized companies in the same area. to its investors transparency to the real contribution of the investment to the reduction of emissions and to the mitigation of climate change, being able to support the process of certification of the Bond".

As a scientific consultant Carbonsink is primarily responsible for guiding and supporting companies interested in Climate Bond, through a technical assessment of the "assets" (Technical Assessment) to verify if the necessary requirements for the creation of a Climate Bond exist. Furthermore, the "insurance" process carried out by Carbonsink also continues once the bond has been launched on the market through the preparation of the monitoring report. The purpose of the report is to verify, on the one hand, how the capital has been used by the issuer and on the other to verify the impact in terms of emissions and, more generally, to valorize the contribution of each investment.

Confidence in climate goals and in the use of Sustainable Finance to cope with climate change is crucial and Carbonsink is confident that by bringing sustainable financial instruments closer to businesses, the private sector can contribute to raising awareness on climate change at the level global.

On the occasion of the partnership with Climate Bond Initiative, Carbonsink is proud to present its contribution on the theme of Climate Bond in the first issue of the magazine "ESG Business Review", the first magazine edited by Eticanews exclusively dedicated to Esg issues.
We thank the Director of Eticanews, Luca Testoni, for the precious opportunity.

The official mediarelease by Climate Bond Initiative 

Carbonsink partner Climate Bond Initiative