Page 118 - ITU-T Focus Group Digital Financial Services – Executive Summary

Green bond frameworks can be created within any city context as long as the relevant legal and regulatory
set-up and level of creditworthiness permit the creation of such schemes. The City of Gothenburg’s green
bond framework has already been taken as an example by cities in the EU as well as in developing and
emerging economies, to consider the option of issuing their own green bonds. The City of Gothenburg’s green
bond framework has been useful in terms of transferability particularly because of its transparent
management practices. In addition, the city has actively engaged in sharing information and showed its
willingness to help entities interested in similar set-ups. Mexico City’s green bond issuance showcases the
framework’s high potential for transferability to other cities.
As seen in the case of the City of Gothenburg, the first city green bond issuance is usually one of many to
come. As soon as a city has the adequate legislation and financial infrastructure in place to issue green bonds,
it can continue with new issuances. The first issuance can be the result of years’ of efforts, but when the
process is in place, this method of financing sustainable city development projects is highly scalable.

A References

Mexico City’s Ministry of Environment (SEDEMA), “Mexico City’s Climate Action Program 2014-2020
(Executive Summary)”, http://www.sedema.cdmx.gob.mx/storage/app/media/programas/cambio-
climatico/executive-summary-PACCM.pdf (accessed on January 17, 2017)
City of Gothenburg (approved by the Planning and Building Committee February 2014), “Development
Strategy Göteborg 2035”, February 2014,
http://international.goteborg.se/sites/international.goteborg.se/files/field_category_attachments/develop
ment_strategy_goteborg_2035.pdf (accessed on January 12, 2017)
City of Gothenburg, “City of Gothenburg Annual Report 2015”,
https://goteborg.se/wps/wcm/connect/57efa7c2-f9cb-46a8-b68b-
b0ea4f977c43/City_of_Gothenburg_annual_report_2015.pdf?MOD=AJPERES (accessed on January 12,
2017)
Sustainalytics, “Ciudad de México (CDMX) Green Bond Framework – Second party opinion by Sustainalytics”,
November 11 2016,
http://www.sustainalytics.com/sites/default/files/green_bond_opinion_cdmx_11112016_final.pdf,
(accessed on January 17, 2017)
City of Gothenburg, “Eligible Projects specification”, March 2015, http://finans.goteborg.se/wpui/wp-
content/uploads/2014/02/Eligable-projects-specification1.pdf (accessed on January 12, 2017)
Climate Policy Initiative, “Green Bonds for Cities: A Strategic Guide for City-level Policymakers in Developing
Countries” (Funded by Climate-KIC), December 2016, https://climatepolicyinitiative.org/wp-
content/uploads/2016/12/Green-Bonds-for-Cities-A-Strategic-Guide-for-City-level-Policymakers-in-
Developing-Countries.pdf (accessed on January 17, 2017)

International Capital Market Association ICMA, “Green Bond Principles, 2016 – Voluntary Process Guidelines
for Issuing Green Bonds”, 16 June 2016, http://www.icmagroup.org/Regulatory-Policy-and-Market-
Practice/green-bonds/green-bond-principles/ (accessed on January 17, 2017)
South Pole Group, Climate Policy Initiative, ICLEI – Local governments for Sustainability and Climate Bonds
Initiative; Green Bonds for Cities,
http://local.climate-kic.org/wp-content/uploads/2016/09/160825_Flyer_Green-Bonds-for-Cities_LR.pdf
(accessed on January 12, 2017)
UNFCCC, “Gothenburg Green Bonds Sweden”,
http://unfccc.int/secretariat/momentum_for_change/items/9935.php (accessed on January 12, 2017).

This case study has been prepared by:
Hanna Vartto, South Pole Group

114 U4SSC series