Climate Awareness Bonds
In 2007, the EIB issued the world’s first Green Bond, labelled a Climate Awareness Bond (CAB).
As of 31 December 2016, EIB remains the largest issuer of Green Bonds with over EUR 15bn raised across 11 currencies, of which the EUR equivalent of 3.8bn so far this year. The EIB provides the market with benchmark Green Bond issuances in EUR, USD and GBP, but has also issued CABs in SEK, CAD, ZAR, CHF, AUD, JPY, TRY and BRL (in synthetic format). EIB is increasing liquidity, size, and scale of Green Bond issuance, in addition to gradually building green reference yield curves. For more information, see our latest CAB Newsletter of October 2016.
The funds are earmarked to match disbursements to EIB lending projects contributing to climate action in the fields of renewable energy and energy efficiency sector:
- in renewable energy this includes for example wind, hydro, solar and geothermal energy production projects; and
- in energy efficiency this includes projects for district heating, co-generation, building insulation, energy loss reduction in transmission and distribution and equipment replacement with significant energy efficiency improvements.
Read more about EIB's key environmental and social policies and standards, and about our Climate action financing.
Management of CAB proceeds
With the inaugural CAB issue, the EIB pioneered the ring-fencing of proceeds in a dedicated liquidity portfolio. CAB funds raised are allocated to a segregated sub-portfolio within EIB’s Treasury. Pending disbursements, the sub-portfolio is invested in money market instruments. As of 30 June 2016, CAB proceeds have been allocated to 145 projects in 47 countries across the globe - see CAB project allocations for the full list of projects supported by CABs from 2007 to H1 2016.