Governance in Sustainable Finance (10 Days)

Introduction:

It has been over a decade since green bonds were first issued to raise funds for environmentally friendly projects, and now the total issuance has surpassed $1 trillion. This rapidly evolving field creates an unprecedented demand for professionals with deep knowledge of sustainable finance solutions, strategies, and governance.

This course on governing sustainable finance systems is designed to help learners understand the essentials of green, social, and sustainability bonds. It provides an exhaustive analysis of sustainable finance by exploring government policies, market context, key product features, and regulations. Participants will also gain insight into the Green and Social Bond Principles, the foundational Sustainable Finance Framework, and the recent Sustainability-Linked Bond Principles, along with how these principles work in practice.

The course covers critical topics such as evaluating and selecting eligible projects for funding, the role of external reviewers, and reporting guidance. To enhance understanding, the course includes practical case studies and quizzes in each module, enabling participants to apply practical knowledge in their professional roles.

Objectives:

By the end of this sustainable finance governance course, participants will be able to:

• Examine new trends and prospects for the development of green, social, and sustainability bonds, emphasizing the importance of sustainable finance.
• Assess the significance of the sustainable finance market and its operational dynamics.
• Identify the fundamental skills required to enter the GSS bond market and commit to the core principles of sustainable finance.
• Determine the principle-aligned issuance framework, outlining the pillars of GSS bonds.
• Define green and social project categories that qualify for GSS bonds.
• Identify reporting frameworks and understand the importance of comprehensive and transparent reporting, including allocation and impact reports as provided by the GBP SBP.
• Understand the purpose and benefits of service providers, particularly external reviewers and regulators, in the context of sustainable finance.
• Identify the perspectives and roles of key players in the GSS bond market, including regulators, investors, underwriters, issuers, external reviewers, rating agencies, stock exchanges, and data & index providers.
• Explore the potential for the issuance of green bonds and loans by both the public and private sectors.
• Apply sustainable finance approaches to real-world investment activities using case studies.

Training Methodology:

• Role-playing scenarios
• Real-life case studies
• Testing and evaluation
• Expert presentations
• Group work
• Peer learning

Course Outline:

Unit 1: Climatology and Financlimatology

• Foundations of finance and investment with a focus on climate-resilient project business modeling
• Climate-related risks
• Managing climate-related respect
• Integrating ESG considerations into investment strategy
• Establishing and disclosing ESG-related data and its impact

Unit 2: Financing Adaptation – Barriers and Supporting Frameworks

• Climate resilience, risk metrics, and mitigation strategies

Unit 3: Business Model Financing – Financial Instruments

• Making a business case for adaptation
• Private investors’ perspectives on investment opportunities

Unit 4: Investing in Infrastructure for Green, Inclusive, and Resilient Recovery

• Green, Resilient, Inclusive Development (GRID) and Quality Infrastructure Investments
• Challenges of green infrastructure: Climate and environmental concerns
• Building inclusive and resilient infrastructure
• Adopting life cycle cost analysis
• Strengthening infrastructure governance

Unit 5: Fundamentals of Green Bonds

• Basics of green bonds and credit risk evaluation
• Legal and regulatory framework of green bonds
• Institutions and frameworks supporting green bonds

Unit 6: Guidelines for Green Bond Planning and Regulation in Europe

• GBP Pillar I
• GBP Pillar II & III
• GBP Pillar IV

Unit 7: Green Bonds: Action & Market

• Introduction to sustainable market finance principles
• Independent policies and external assessments of green bonds

Unit 8: Green, Social, Thematic, and Sustainability-Linked Bonds

• Exploring fintech in sustainability: Blockchain and the green bond market
• Green securitization

Conclusion:

Participants in this sustainable finance governance course will gain practical tools and insights to foster sustainable finance growth within their organizations. They will also contribute to the advancement of sustainability-focused financing mechanisms and the strategic integration of sustainability into financial governance.