Morocco, host country of 22nd UN conference on climate change (COP22) has purchased from the World Bank USD 100 million in World Bank Green Bonds.
These 3-year bonds mature on December 15, 2019 and have a semi-annual fixed rate coupon payment.
The transaction of the Green bonds was made by Bank Al-Maghrib, the Central Bank of Morocco.
“We were delighted to collaborate with Morocco’s central Bank on this important initiative“, said World Bank Group President Jim Yong Kim.
This operation comes as world leaders are bracing to gather in Marrakech at COP22 to discuss urgent actions needed to ensure implementation of Paris Agreement.
“We need a global financial system that’s fit for purpose to factor in climate risks and opportunities,” added WB chief, stressing the importance of green bond market to mobilizing the private capital flows needed to address climate change.
The Green investment will support sustainable development projects financed by the World Bank, including in countries in Africa” said Abdellatif Jouahri, Governor of Bank Al-Maghrib.
“This investment sends a powerful message to the global investor and climate policy community about Morocco’s commitment to climate finance,” said World Bank Vice President and Treasurer, Arunma Oteh.
“Morocco is one of the countries that has benefitted from the World Bank’s Green Bond program to support its transition to a low carbon economy and is now making an investment in the global transition to a greener planet”, he underlined.
Morocco has pledged to reduce greenhouse gas (GHG) emissions by 32 by 2030. In its “Intended Nationally Determined Contribution” (INDC) to address climate change to UN Framework Convention on Climate Change (UNFCCC,) the country has unveiled an ambitious plan to increase the share of renewable electricity capacity to 42 pc in 2020 and to 52 pc by 2030.
Since the World Bank’s first green bond launched in 2008, the institution has issued 128 green bonds in 18 currencies, totaling approximately $9.7 billion equivalent. World Bank Green Bonds offer investors an opportunity to support environmental solutions through a bond product that benefits from the triple-A credit strength of the World Bank.
World Bank Green Bonds help support the financing of projects in member countries that meet specific criteria for low carbon and climate resilient growth, seeking to mitigate climate change or help affected people adapt to it.
The types of eligible projects include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy.
They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.
