Project Details
Project
Ireland Sovereign Green Bond Second-Party Opinion
Client
Ireland
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Ireland
Evaluation Date
Aug 2018
Evaluation Summary
Sustainalytics is of the opinion that the Irish Sovereign Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the use of proceeds for (i) Sustainable Water and Wastewater Management, (ii) Clean Transportation, (iii) Environmentally Sustainable Management of Living Natural Resources and Land Use, (iv) Renewable Energy, (v) Energy Efficiency and (vi) Climate Change Adaptation will lead to positive environmental impacts and advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
Ireland’s internal process in evaluating and selecting projects is aligned with market standards, including a dedicated green bond working group with representatives of the National Treasury Management Agency and the Departments of Public Expenditure and Reform, Communications, Climate Action and Environment, and Finance.
MANAGEMENT OF PROCEEDS
Ireland’s processes for management of proceeds is aligned with market practice. These include a system to track the allocation of an amount equal to the net proceeds of any green bond. Unallocated proceeds are managed according to the liquidity policies of the National Treasury Management Agency of Ireland as part of the Central Fund. Sufficient balances will be maintained to cover any proceeds of a Green Bond Issue that have not yet been allocated to green projects/programmes.
REPORTING
Ireland intends to report allocation proceeds in an Annual Allocation Report, including allocation per project/programme and category and amount of unallocated proceeds. In addition, Ireland is committed to publish an Eligible Green Project Impact Report on a biennial basis. Impact indicators reported include, but are not limited to, water discharges with no treatment or preliminary treatment only, number of electric vehicle grants, greenhouse gas and ammonia emissions reductions (tonnes), hectares of forest planted, and number of flood defenses built. In Sustainalytics’ view reporting on these metrics is in line with market practice.