BayernLB

Newsticker

May 2018

23 May

EU Commission: initial outcome of EU Action Plan for sustainable finance

In March 2018 the EU Commission unveiled its Action Plan for sustainable finance. The Commission has recently presented some of the first concrete results of the Plan, stressing in the process once again the financial market’s role in the pursuit of the Paris climate objectives. The proposals that were also presented have to do with the planned standardisation of the system for classifying sustainable activities, as well as with the requirements imposed on institutional investors in terms of taking environmental, social and governance (“ESG”) factors into their capital-investment decisions. The EU Commission has furthermore installed a series of mechanisms for checking how ESG aspects may be integrated into professional consultation for retail customers. For more information, go to: http://europa.eu/rapid/press-release_IP-18-3729_de.htm

8 May

BayernLB anticipates USD 210bn for the green bond market in 2018

In 2018 BayernLB is expecting further growth for green bonds. With USD 86.7bn worth of issues in 2016 and USD 156bn last year, the experts at BayernLB are expecting another increase this year – to USD 210bn.

7 May

BayernLB releases green bonds study

BayernLB Research has released a new study on the current political climate for green finance and the recent developments on the green bond market (“Green Bonds: Mächtig Rückenwind für die neue Asset-Klasse”). The bottom line: whether for investors or issuers, there are a number of arguments to be made for green bonds. At present, however, growth of the asset class is hampered by the lack of standardisation and the resulting greater need on the part of investors for analyses. On the other hand, the strong tailwind from the political side – and in particular from the EU action plan published in March 2018 – could prompt changes in this area.

4 May

BayernLB adds sustainable infrastructure fund to its product line

BayernLB helps its customers in their quest for a sustainable investment and is therefore now selling a fund for which Encavis Asset Management AG selects, audits and keeps tabs on the renewable-energy plants. Encavis Infrastructure Fund II, SICAV-RAIF Renewables Europe II invests in renewable-energy plants, with an eye towards a balanced and diversified portfolio. The assets that it invests in are mostly solar and wind farms in Europe, especially Germany, Austria and France.

April 2018

30 April

Climate meeting begun in Bonn

In the run-up to the World Climate Conference in Katowice, Poland, this December, representatives from over 190 countries are meeting in Bonn from 30 April to 10 May to discuss the measures to be taken under the Paris Agreement. The participants are looking to come up with standardised rules for measuring and reporting greenhouse gas emissions in every country. The purpose of such rules is to ensure comparability among the countries’ contributions to climate protection as well as transparency in ascertaining which country has made which contribution.

17 April

BayernLB is providing support in placing the largest ABN AMRO green bonds to date

ABN Amro Bank NV has issued its third and largest green bond to date under the joint management of BayernLB, ABN Amro, DZ Bank and SEB. The returns from the issue will be used exclusively to finance and refinance wind farms and to improve the energy efficiency of buildings. The seven-year bearer debenture with an issue volume of €750 million, an account size of €1.25 billion and a 0.875% coupon was subscribed to by around 100 investors, 80% of which are explicitly sustainability-focused investors.

12 April

Finland is ending coal-fuelled energy generation in 2029

Finland’s Minister of the Environment, Kimmo Tiilikainen, has announced that the Scandinavian country will ban the use of coal in generating energy from 2029. According to the Minister’s statement, the Finnish government is also looking into a subsidy scheme that will reward companies for stepping away from coal ahead of time.

3 April

Energy transformation exhibition at the German Centre Shanghai

From 13 April to May 30 2018, the German Centre Shanghai is hosting an exhibition about the energy transformation in Germany. The exhibition is organised by the German Federal Foreign Office and the German Association for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit, or GIZ) and demonstrates the steps that Germany is taking towards an environmentally friendly energy supply. China is among the more than 60 countries worldwide that have taken the German Renewable Energy Sources Act (EEG) as a model for developing their energy policy. The German Centre Shanghai was founded in 1994 for the purpose of promoting foreign trade and has been a subsidiary of BayernLB since 1996.

February 2018

27 February 2018

European Council approves reform of EU emissions trading

The European Council has formally approved a reform of the emissions trading system for the period after 2020. An important element of the reform is that the cap on the total volume of emissions will be reduced by 2.2% annually (linear reduction factor). Emissions trading is a central component for achieving the EU climate goals. The system operates in all 28 EU countries plus Iceland, Liechtenstein and Norway. It limits emissions from approximately 11,000 heavy energy-using installations and airlines operating between these countries and covers around 45% of the EU’s greenhouse gas emissions.