KINGSTON, Jamaica — The Jamaica Stock Exchange (JSE) on Tuesday officially launched the much-awaited Jamaica Green, Social, Sustainability and Sustainability-Linked Bond Guide (GSS+) which is to be used as a blueprint in guiding issuers, investors and other stakeholders in navigating the evolving green financing landscape.

The guide, developed with the support of Inter-American Development Bank (IDB) Invest and other local and international partners, provides detailed insights into the principles, frameworks and best practices underpinning these financial instruments.

Minister of Finance Dr Nigel Clarke speaking at the launch told the audience that there are billions of dollars available in the global financial markets to finance green projects.

CLARKE…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.

Satisfied, however, that the country has created a mechanism that will enable a take-off for this sector, he urged local financial entrepreneurs to tap into the growing pool of funds and also for the country at large, to capitalise on opportunities in the area in order to build out climate resilience and to advance its energy mix.

“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,” Clarke said.

The JSE’s green bond market was developed to support the flow of investments for sustainability projects and experts have forecast to see more than US$5 billion flowing in to the sector over the next two decades.

Managing Director of the JSE Marlene Street Forrest in welcoming the GSS+ said there are already prospective issuers, both locally and in the region, who are excited about the opportunity 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 said.

Green bonds, which are debt securities mainly issued to offer funding support to environmentally friendly, climate-related projects, are expected to see massive increases above 20 per cent this year with North America and corporate issuers driving the growth.

According to Bloomberg data, approximately $939 billion of financing from these instruments were issued in 2023. International financiers such as the World Bank has noted that over the last decade it has already issued more than $19 billion in green financing through more than 220 bonds and in 28 currencies.

Financial sector stakeholders who were in attendance at the launch, such as Head of NCB Capital Markets Angus Young, in embracing the initiative, further pledged to continue their work with the green energy sector as they seek to build a robust pipeline to develop local and regional programmes.

“Successful green bond listings will require large, diverse and reputable partners and we at IEG (Innovative Energy Group) have begun that engagement with those stakeholders. As IEG organises 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,” commented IEG Director Wayne Wray, outlining his company’s vision for capitalising on investments in the sector.