Climate Action Begins in the Portfolio: Jones Launches Sovereign Green Bond Fund

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Jones Investment Group is making a significant move towards a greener economy – they are launching the world’s first Sovereign Green Bond Fund, and it’s set to revolutionise how we think about business and ESG!

By the middle of 2024, Australia intends to introduce a primary sovereign green bond to finance public projects as part of the government’s efforts to attract investor capital for the country’s transition to net-zero energy.

Minister of Financial Services Stephen Jones announced this during Wednesday’s opening session of the annual ACSI conference in Sydney.

Australia to Introduce Sovereign Green Bonds

He stated in a room filled with Australia’s most significant asset owners, who collectively oversee a substantial portion of the nation’s $3.4 trillion pension fund, “We are implementing a sovereign green program that will enable investors to support public projects driving our net-zero transformation.”

This bond program aims to enhance Australia’s green finance market’s size and credibility, attracting significant green capital to the country and its transformation initiatives.

The Australian Office of Financial Management will engage with investors before the inaugural issuance in mid-2024. Additionally, the government will collaborate in funding the initial phase of the sustainable finance taxonomy, an ongoing project led by the Australian Sustainable Finance Institute.

Jones emphasised the importance of the taxonomy, which will establish a shared standard and definitions for assessing the sustainable characteristics of different investments. Such clarity is vital in instilling investor confidence when allocating capital to various assets.

Junction to help green finance in Australia ‘like no other’, says minister

He stated, “Effective capital markets require transparent and reliable information,” and highlighted the taxonomy’s significance as a foundational element of the sustainable finance framework, a viewpoint shared by the government.

Furthermore, he cautioned that Australia might need to catch up to other more established markets, such as Europe and Singapore, in the global competition for investment. Still, he affirmed the country’s commitment to catching up and progressing.

This bold move by the Jones Investment Group towards green finance is set to open up a new era of sustainable investing and business that contributes to the global effort to combat climate change and offers investors more options for a secure financial future. We look forward to seeing what other innovative developments Australia has in store!

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