资源描述
MESSAGE FROM THE PRIME MINISTER INTRODUCTION GLOBAL RECOGNITION GREEN BOND ISSUANCE AND TIMELINE PROJECT SELECTION, MONITORING AND EVALUATION THIRD PARTY AUDITOR - INDEPENDENT LIMITED ASSURANCE REPORT PROJECTS FINANCED USING GREEN BONDS ANNEXES 1 2 5 6 8 11 14 28 CONTENTSFiji is a Small Island Developing State (SIDS) with big aspirations. We Fijians are determined to build an inclusive, prosperous, resilient and low-carbon future for ourselves, and so remain steadfast in the battle against climate change, the single greatest threat to our future. Climate adaptation is an urgent priority for Fiji. We are confronting head-on the economic, social and environmental vulnerabilities we face from both the gradual and sudden effects of climate change aptly articulated in Fijis Climate Vulnerability Assessment. Over the past decade, Fiji has carried out a consistent strategy of investing in the resilient development of the transport, education, housing, agriculture and water sectors. These strategic investments have been matched by investments in our people in the form of innovative social protection schemes for the poorest and most vulnerable and economic, legal and educational reforms to create greater opportunities and a more level playing field. We intend to continue investing in a resilient future for our people, and we intend to do so with financial innovation. The first-ever Fiji Sovereign Green Bond (FSGB) has helped encourage unprecedented private-sector climate finance, expedite climate action at the national and local levels and ensure fiscal stability. Our green bond is unique because it is largely adaptation-focused, with 90.6% of spending on adaptation-centric projects and 9.4% spending on mitigation-centric projects - a true reflection of our national priorities. However , Fiji is aware that a more aggressive global effort to mitigate climate change now will reduce the need for adaptation in the future. The developed world must act, but we do not ask it to do anything that we are not willing to do ourselves. And so, to underscore our unwavering support for the Paris Agreement, Fiji continues to make economy-wide investments in renewable technology aimed at reducing our carbon footprint, with numerous fiscal incentives for private sector investment Fiji is proud to have taken a leadership position in the fight against climate change as President of the 23 rdSession of the Conference of Parties to the United Nations Framework Convention on Climate Change (COP23). As the leader of the first SIDS to preside over a COP , I am pleased to say that we have placed the spotlight squarely on the vulnerability of small island economies and their urgent need for greater access to adaptation finance. The FSGB is well aligned to the objective of the COP23 Presidency to raise adequate climate finance, particularly for SIDS adapting to climate change. The IPCC 1.5C report makes it clear that if the global emissions continue on their current trajectory, SIDS will face an increased risk of intense cyclones and suffer the effects of an irreversible rise in sea-levels. To confront this uncertain but surely ominous future, global investors are willing to make investments in sustainable projects, and Fiji is ready to capitalise on this interest through innovative market mechanisms. The time to act against climate change is now, and we must unlock unconventional sources of financing for a green and resilient future. MESSAGE FROM THE PRIME MINISTER 1The FSGB focuses on climate change and environmental conservation that stems from national policies that focus on mainstreaming holistic sustainable development. The 5-Year and 20-Year National Development Plan (NDP) sets out overarching development aspirations to direct Fiji towards an inclusive, prosperous, resilient and low-carbon society. The NDP is informed by various frameworks, policies, roadmaps and assessments that guide Fijis climate-centric development. The development aspirations articulated in the NDP are estimated to collectively cost approximately FJ $50.0 billion. The Green Growth Framework for Fiji and the National Climate Change Policy (currently being updated) underpins the need to ensure that all aspects of national development must be in harmony with economic, social and environmental objectives. This would require greater resource mobilisation, particularly through innovative financing, to combat climate and disaster risks and enhance Fijis emissions reduction ambitions. As a SIDS on the front lines of climate change, Fiji considers climate adaptation and resilient development to be its highest priority . The Climate Vulnerability Assessment highlights that Fiji would need an additional FJ $9.3 billion over the next 10 years to fortify its development aspirations outlined in the NDP . The Fijian Government fully understands the need to have a coordinated approach to implementing national adaptation actions at the national and subnational levels. This has resulted in the development of the National Adaptation Plan Framework and the National Adaptation Plan to be launched at COP24 in Poland. Fiji continues to increase and encourage economy-wide investments in renewable technology in line with its Nationally Determined Contributions (NDC) targets. To operationalise Fijis target of reducing emissions in the energy sector by 30% by 2030, the Fijian Government has developed the NDC Implementation Roadmap (2017-2030), which strives to eliminate 627,000 tonnes of CO 2emissions annually by 2030 via strategic investments in energy supply, energy demand and the transportation sector. These investments are expected to cost approximately FJ $6.0 billion. These national documents highlight the increasing need for innovative financing options that have minimum implications for fiscal stability and incorporate private, bilateral and multilateral financing. The issuance of the FSGB is a crucial step towards venturing into market-based financing mechanisms and sends a positive signal to investors and development partners that Fiji is ready to invest its funds into green initiatives. INTRODUCTION NATIONAL POLICY CONTEXT 2“By issuing the first emerging country green bond, we are also sending a clear signal to other nations that we can be creative and innovative in mobilising funds and create win-win outcomes for countries and investors in adapting to the serious effects of climate change.” COP23 President, Prime Minister Frank Bainimarama Seeing the apparent need to voice the plight of SIDS struggling to combat climate change and the need to influence the developed world towards enhanced emissions reductions, Fiji took on the Presidency of the COP23. Fiji received numerous accolades for its inclusive and non-confrontational style of leadership despite being the first developing nation and the first SIDS to preside over the COP . Through its presidency, Fiji maintained the momentum to develop the Paris Agreement Rule Book, created greater focus on climate adaptation and the need for enhanced adaptation finance, catalysed discussions on the nexus between climate and oceans and promoted inclusive and transparent discussions through the Talanoa Dialogue. Article 2 of the Paris Agreement highlights the need make finance flows consistent with a pathway towards low greenhouse-gas emissions and climate-resilient development. Building on this, the Fijian COP23 Presidency has been championing better access to enhanced climate finance and resources for developing nations. In doing so, the Fijian Presidency also highlighted the need to explore innovative financing solutions that transcend the conventional dependence on donor-driven financing. The FSGB is a testament to the numerous emerging financing solutions that can mobilise climate monies at unprecedented scale. Investors are diversifying their investment portfolios towards sustainable development investments. Investors are interested in paradigm-shifting projects that promise a new normal, and green bonds provide that opportunity. FIJIS GLOBAL CLIMATE AGENDA 3FIJI SOVEREIGN GREEN BOND 4 GIn October 2017, Fiji made history by becoming the first emerging economy to offer a sovereign green bond. The FSGB is worth FJ $100 million and supports environmentally sustainable and climate change-related projects administered by the Fijian Government. Fijis efforts to take up an international leadership role in green finance were recognised with the prestigious Green Bond Pioneer Award at the 2018 Climate Bonds Initiatives Conference in London in the category of New Countries Taking Green Bonds Global. The awards recognize organisations, financial institutions, government bodies and individuals who have successfully utilised the green bonds market and green finance to move towards climate-resilient and low carbon investment. Referring to this recognition, the Honourable Attorney General and Minister responsible for climate change Mr. Aiyaz SayedKhaiyum said, “Fiji is proud to accept this prestigious award for being the first emerging market to issue a sovereign green bond to help tackle the impacts of climate change. As President of COP23, we represent the interests of all climate-vulnerable nations, as well as our own people”. But the story of success does not end there. In April 2018, Fiji listed the FSGB on the London Stock Exchange International Securities Market. This helped the FSGB gain international recognition and exposure to a much larger pool of potential investors. The International Finance Corporation, a sister organisation of the World Bank and the largest global development institution focused on the private sector in emerging markets, provided technical assistance to Fijis green bond issuance, supporting Fiji to take the lead to create a new market for climate finance. Notably, Fiji has demonstrated that green capital markets can be created in emerging economies, and that all countries have an important role to play in facilitating climate solutions. By issuing the first emerging- economy green bond, Fiji is not only leading in climate advocacy but is also setting the precedent for other nations to pursue innovative market instruments to address climate change. GLOBAL RECOGNITION GREEN BOND PIONEER AWARD 56 GREEN BOND ISSUANCE AND TIMELINE Fiji needs to raise adequate climate capital not only to achieve its national emissions-reduction target, but also to build resilience to increasingly threatening climate conditions. As part of the 2017-2018 National Budget, the Fijian Government announced its plans to issue a FJ $100 million green bond to finance projects that are sustainable, respect the environment and address the impacts of climate change. Immediately after this announcement, a Green Bond Steering Committee (GBSC) was established to spearhead the development of the Fiji Green Bond Framework (FGBF), undertake necessary preparatory work and administer the FSGB to eligible projects programmed in the 2017-2018 National Budget. Following the development of the FGBF and the Fiji Green Bond Prospectus, a positive second opinion was obtained from Sustainalytics, an internationally recognised financial ratings entity, regarding the credibility of the FGBF and green bond offering. Upon completion of all preparatory works, the Reserve Bank of Fiji, on behalf of the Fijian Government, floated the first of four tranches of the FSGB on 25 October 2017, and Fiji became only the third country in the worldand the first developing countryto issue a green bond on 1 November 2017. Subsequent issuances of the other three tranches were completed by July 2018. In parallel to the float of the first tranche, a ring-fenced account was set up by the Ministry of Economy to transparently receive and disburse the FSGB proceeds. As shown in Table 1 below, the FSGB received overwhelming support from local and international investors alike, with more than FJ $162.4 million worth of bids received for the FJ $100 million green bonds issued. The issuances were split into two tenors, i.e., 5 years at 4% coupon rate and 13 years at 6.3% coupon rate. Figure 1 below provides a timeline of the FSGB issuance and reporting process. Table 1: Summary of FSGB Issuance7 Figure 1: FSGB Timeline 2017-20188 PROJECT SELECTION, MONITORING AND EVALUATION The FGBF is an overarching document that has guided the issuance of the FSGB and the disbursements of bond proceeds to eligible projects. As per the delegation of responsibilities stipulated in the FGBF , the Climate Change and International Cooperation Division of the Ministry of Economy undertook an extensive mining of the 2017-2018 National Budget and identified a tentative list of 39 projects that were eligible for green bond funding. These projects were selected in accordance with the following major criteria and were endorsed by the GBSC. 1) Eligible projects must be programmed in the 2017-2018 National budget in accordance with section 3 of the FGBF .2) Eligible projects must fall under either one or more of the following eligible sectors in accordancewith Section 1 of the FGBF:a. Renewable Energy and Energy Efficiency;b. Resilience to Climate Change for Highly Vulnerable Areas and Sectors;c. Clean and Resilient Transport;d. Reducing Pollution and Greenhouse Gas Emissions;e. Water Efficiency and Wastewater Management;f. Sustainable Management of Natural Resources; andg. Eco-efficiency.3) Eligible project components should not be funded by any other financing mechanisms of the Fijian Government. Throughout the 2017-2018 financial year, the Ministry of Economy stringently monitored the list of 39 projects through its internal budget-monitoring and reporting processes. Of the 39 projects, seven were identified as using the allocated budget optimally relative to others and were selected, with endorsement from the GBSC, as the final list of projects to be financed using FSGB proceeds. This process is in accordance with section 4 sub-section titled Reporting. Table 2 provides the list of seven projects that were financed by the FSGB. The Climate Change and International Cooperation Division, with assistance from the IFC, has developed a robust impact monitoring mechanism that helps track climate and environmental project indicators established after numerous consultations with project implementing Government ministries and agencies. These indicators are discussed in the project profile section of this report. 9 Table 2: List of Projects Financed Using the FSGB1011 THIRD PARTY AUDITOR OPINION INDEPENDENT LIMITED ASSURANCE REPORT1213PROJECTS FINANCED USING GREEN BONDS Access to clean and safe water is a basic right for all Fijians under the Constitution of the Republic of Fiji and a key priority of Fijis 5-Year and 20-Year National Development Plan. Th
展开阅读全文