Environment groups call for green bonds

CONSULTANTS working on the valuation of Zimbabwe’s biodiversity economy say the country should issue green bonds on the Zimbabwe Stock Exchange (ZSE) to raise money for environment and climate related investments.

The Environment and Tourism ministry in partnership with African Wildlife Foundation commissioned a National Biodiversity Economy study last June to provide an overview of the status of the biodiversity economy and planning framework for natural capital accounting in Zimbabwe.

The government is working with Anchor Environmental Consultants and the Zimbabwe Environmental Law Association on the study.
A consultant with Anchor Environmental, Luke Wilson, said the bonds would be limited to investment projects that support environmental protection.

“Green bonds are an instrument that can be used to raise money for biodiversity. It works quite similarly to a conventional bond but differs in the scope of products that can be funded,” Wilson told The Financial Gazette.
“So, it’s meant for products which are environmentally beneficial”.

The South African-based Anchor Environmental Consultants offers ecological and socio-economic assessment, research and monitoring to inform environmental management and policy.

“In 2019, the ZSE released rules and regulations governing green bond listing. It emphasised this was to support investments in critical environmental, climate related matters,” Wilson said. He said there were a number of possibilities that the country could pursue in listing the bonds.

“Elsewhere, it’s often multi-lateral institutions that issue these bonds such as the African Development Bank, for example. The World Bank as well as corporates can also issue the bonds, maybe corporates that are interested in supporting green investments and I guess it can become part of their ESG (environmental, social, and governance), sort of portfolio,” Wilson said.

“I know some countries in Africa such as Nigeria have now listed green bonds. So, it’s there and the framework is there.
“And I think it can be great for financing anything such as sustainable agriculture, particularly area expansion… maybe commercialising non-timber forestry products. All of those areas seem to fall within the ambit of green bonds that the stock exchange has identified,” he added. newsdesk@fingaz.co.zw