Skip links and keyboard navigation

    Media Statements

    Coat of ArmsMedia Release
    Treasurer and Minister for Trade and Investment
    The Honourable Curtis Pitt

    Wednesday, February 15, 2017

    Green Bond certification to support environmentally responsible projects

    Treasurer and Minister for Trade and Investment
    The Honourable Curtis Pitt

    Wednesday, February 15, 2017

    Green Bond certification to support environmentally responsible projects

    Queensland is on its way to boosting investment in environmentally responsible projects through Green Bonds issued by the government’s Queensland Treasury Corporation. 

    Treasurer and Minister for Trade and Investment, Curtis Pitt, said the QTC planned to issue certified and independently verified green bonds to domestic and international investors for use on projects funded entirely or in part by the Queensland Government. 

    “This is great news for Queensland as QTC Green Bonds will assist the government’s commitment to the environment and action on climate change to benefit future generations,” Mr Pitt said. 

    “It means Queensland will be joining an ever-growing worldwide movement in supporting the issuing of green bonds.” 

    Mr Pitt said that pre-issuance certification was provided by the Board of the London-based Climate Bonds Initiative, an international certification agency that oversaw the Climate Bonds Standard.

    He said the timing of the first QTC Green Bond would depend on market conditions and QTC had indicated it would soon brief key institutional investors. 

    The list of potentially eligible projects could include: 

    • renewable energy
    • energy efficiency processes and products
    • low-carbon transport — electrified rail infrastructure and cycleways
    • drought resilience and flood defence
    • water and wastewater treatment plants and distribution infrastructure
    • preservation of the Great Barrier Reef and other natural ecosystems
    • low-carbon building; and
    • other projects covered by new or revised climate bond sector-specific standards. 

    Philip Noble, QTC Chief Executive, said green bond could be allocated to existing, new or ongoing eligible projects that had environmental benefits for Queensland. 

    “Eligible projects are those funded, entirely or in part, by the State of Queensland, supporting the transition to a low-carbon and climate-resilient economy,” Mr Noble said.

    He said as part of the pre-issuance certification process, QTC submitted an application to the Board of the Climate Bonds Initiative — comprised of members representing $34 trillion of assets under management — detailing Queensland Government initiatives that could potentially support green bonds.

    In order to receive the Climate Bond Certified stamp of approval, QTC was required to seek assurance from an approved third party verifier who provided an independent opinion that a potential issuance met the Climate Bond Standard. 

    Mr Noble said more information on the details of the QTC Green Bond would be made available following an announcement to the market, as this enabled fair and transparent dealings with investors.

    Mr Pitt said Green Bonds were just one way the government was working with the private sector to deliver new projects and jobs. 

    “Another recent example was the launch of our $130 million Jobs and Regional Growth Fund that will help businesses grow and expand,” he said. 

    “The fund will focus on regional areas and any areas with unemployment rates higher than the state average and on sectors such as agriculture, resources, tourism, manufacturing and construction. 

    “It will provide one-off financial assistance — from $100,000 to $10 million — in grants or relief from state charges on a case-by-case basis.” 

    Mr Pitt said the government’s efforts to work with business had already delivered results: 

    • growth is up
    • the state’s unemployment rate is down
    • debt is down
    • confidence is up. 

    “We see proof of that in the latest NAB business survey forJanuary showing Queensland business confidence up 3 points +12 points – ahead of all other states,” he said. 

    “NSW’s result was +6 points, Victoria +8 points, and SA +4 points. 

    “The latest survey means that business confidence has been highest, equal-highest or second highest in Australia for 18 of the past 19 months,” Mr Pitt said. 

    Media contacts:

     

    Treasurer and Minister for Trade and Investment: 0447 316 432 / 0419 945 546

    Queensland Treasury Corporation: Jo Nelson 3842 4714 / 0416 268 414