On Thursday, July 30, 2024, the JSE launched the Jamaica Green, Social, Sustainability and Sustainability-Linked Bond Guide (GSS+ or Green Bond) which is a comprehensive resource designed to support issuers, investors and other stakeholders in navigating the evolving green financing landscape. It provides detailed insights into the principles, frameworks and best practices underpinning these financial instruments. The Green, Social, Sustainability and Sustainability-Linked Bond Guide was developed with the support of IDB Invest and other local and international partners.
Managing Director of the Jamaica Stock Exchange Dr. Marlene Street-Forrest said: “Today marks a significant milestone in our collective journey towards a more sustainable and environmentally responsible future for all Jamaicans and investors in Jamaica. We are reminded of the urgent need to address the global challenges posed by climate change, environmental degradation and social inequity, which significantly challenge and impact small island countries like ours because of geographic location and limited resources. The financial sector has a leading role to play in ensuring that we mitigate the risks by providing funding and governance for green initiatives and it is for this reason we introduce to the market what we believe is a powerful tool in assisting in moving the needle forward. “
“We are happy to report that there are prospective issuers, not only in Jamaica, but within the region, who are excited about the potential opportunities to issue green bonds. Given the global challenges posed by climate change and social inequality, Investors are showing a growing interest in supporting the global sustainability agenda and aiding the shift towards a low-carbon, equitable economy. Therefore, it is fair to assume that there is a market, and this market could prove active for investors within this space.” she concluded.
Minister of Finance and the Public Service Dr. The Honourable Nigel Clarke, the Guest Speaker at the event told the audience that there are hundreds of billions of dollars available in the global financial markets to finance green projects, and Jamaica must seek to capitalize on this to build climate resilience and advance its energy mix. He used Hurricane Beryl and the damage it caused to the country’s infrastructure and lives to urge financial entrepreneurs to enter the green bond space.
He credited the Jamaica Stock Exchange for leading the charge by setting the framework and guidelines for a green bond market to operate. He indicated that the substantive work has been done and it is going to be necessary for others to follow up. Dr. Clarke said “The things that are good for us, that are necessary for our own sustainability are too expensive for us to undertake. So, the innovation that exists for us to solve this problem is green financing.”
He stated that Jamaica’s Green Bond Guide allows us to compete as we can now produce guidelines that when we say to the world that we have a green issue, there is the institutional mechanism which underpins authenticity.
The finance minister expressed satisfaction that Jamaica is creating the infrastructure to enable green financing to take off; to enable Jamaican projects and institutions to tap into this growing and significant pool of funds. He expressed that Jamaica would need credible, dynamic, financial entrepreneurs and it will take a different type of thinking to exploit all the opportunities.
“I am saying to the world that Jamaica is ready and there is a house for your green dollars here. Even the government of Jamaica will need to access green financing for its projects. This is a brand-new area that entrepreneurial financial intermediaries are expected to take full advantage of so that we can engage in the kind of adaptation and mitigation measures so that we can be more resilient against the natural disasters to which we are vulnerable. We must take responsibility for our vulnerability and this green, social, sustainability and sustainability-linked platform is a perfect example of this.” he added.
Among the specially invited guests were members of the green energy sector, the financial sector and the regulatory sector.
Mr. Wayne Wray, Director of Innovative Energy Group, outlined his company’s vision to capitalize on investments in the green bond sector. He said: “Successful green bond listings will require large, diverse and reputable partners and we at IEG have begun that engagement with those stakeholders. As IEG organizes for the next round of acquisition we believe that Jamaican listed companies with the requisite corporate governance guidelines and the transparent reporting requirements of the JSE are better equipped for success.”
Remarks were also brought by Ms. Monique French, Chief Credit Officer CIBC Caribbean and Mr. Angus Young, Chief Executive Officer of NCB Capital Markets who both endorsed the initiative and pledged to continue to work with the green energy sector to build a robust pipeline to develop local and regional programmes.
Ms. Malini Samtani, Climate Change Officer, Advisory Services Division, IDB Invest gave a presentation on GSS+ bonds demonstrating how governments and the private sector can work together to maximize benefits in the green bond sector.
Mrs. Yvonne Vogt, Consultant of legal partners HPL, LLC whose firm worked with key stakeholders in developing the Guide and explained key aspects of the Guide and Mr. Dereck Rajak, Chief Executive Officer of CARICRIS (Caribbean Information and Credit Rating Services) who will be working with the Jamaica Stock Exchange, to rate Green Bond prior to and post issuance were the other presenters.
