CCP Climate Finance & Green Bonds Flashcards
6 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCP Climate Finance & Green Bonds flashcards as text
What is 'greenwashing' in the context of climate finance and green bonds?
Answer: Misleading claims that a financial product or investment funds genuine environmental benefits when it does not
Greenwashing refers to deceptive or unsubstantiated marketing that overstates the environmental credentials of a financial product, fund, or investment, undermining investor trust and market integrity.
What is the Task Force on Climate-related Financial Disclosures (TCFD) framework primarily designed to do?
Answer: Help companies disclose climate-related financial risks and opportunities to investors and stakeholders
TCFD provides a voluntary framework for organizations to disclose climate-related financial risks and opportunities across four pillars: governance, strategy, risk management, and metrics and targets.
Under the EU Sustainable Finance Disclosure Regulation (SFDR), what are 'Article 9' funds?
Answer: Funds that have sustainable investment as their core objective, with the highest level of green claims
Article 9 (dark green) funds under SFDR must have sustainable investment or a reduction in carbon emissions as their explicit investment objective and face the strictest disclosure requirements.
What is a 'transition bond' and how does it differ from a standard green bond?
Answer: A transition bond finances activities in high-emitting sectors moving toward lower emissions, while green bonds fund already-green activities
Transition bonds finance climate transition activities in hard-to-abate sectors like steel, cement, and shipping that are not yet 'green' but are taking credible steps toward lower-carbon operations.
What does the Climate Bonds Standard (CBS) certification by the Climate Bonds Initiative certify?
Answer: That a bond's proceeds are allocated to assets and projects consistent with a 1.5°C or well-below 2°C climate pathway
The Climate Bonds Standard provides science-based sector criteria to ensure bond-financed assets are consistent with a low-carbon economy aligned with the Paris Agreement temperature goals.
What is a 'stranded asset' risk in the context of climate finance?
Answer: The risk that fossil fuel assets lose value or become uneconomical due to climate policy, technology shifts, or changing demand
Stranded assets are fossil fuel reserves, infrastructure, or other carbon-intensive investments that may lose economic value before the end of their expected useful life due to regulatory changes, decarbonization trends, or physical climate impacts.