KMS provides Climate bonds advisory services such as specialized guidance and support to issuers, investors and other stakeholders involved in the issuance and management of climate bonds. Climate bonds are financial instruments specifically earmarked to finance projects and initiatives that contribute to climate change mitigation, adaptation and resilience. Scope of issuer advisory services include, but not limited to Project Identification assistance in certification process and Green Bond Framework Development. Investor advisory services include, but not limited to Due Diligence and impact assessment.
What climate and green bonds actually are
A climate bond, or green bond, is debt raised specifically to fund climate and environmental projects. The money is ring fenced: renewable energy, clean transport, water, sustainable land use, climate adaptation. What makes a bond green is not the label but the discipline behind it, a clear framework for what the proceeds can fund, an independent opinion or certification that the bond meets a recognised standard and reporting that shows the money did what it promised.
The frameworks that matter
Most green bonds are built on the ICMA Green Bond Principles, the voluntary framework covering use of proceeds, project evaluation and selection, management of proceeds and reporting. Bonds that want a stronger signal get certified under the Climate Bonds Standard, a 1.5°C aligned scheme where an independent Approved Verifier checks the bond before certification. And in the EU, the European Green Bond Standard has applied since December 2024 as a regulation, raising the bar for anything marketed as a European green bond. An issuer needs to know which of these applies before going to market.
How KMS advises on climate bonds
Kanaka Management Services (KMS Group) advises both sides of a green bond. For issuers, that means identifying eligible projects, developing the green bond framework and preparing for certification, including the documentation an Approved Verifier or external reviewer will assess. KMS supports the certification process, it does not certify or verify the bond itself, that sits with the accredited verifier. For investors, the work is due diligence and impact assessment, checking that a bond is as green as it claims and that the projects behind it are real.
This connects to the rest of what KMS does. The projects a climate bond finances, forest protection, renewable energy, restoration are the same kinds of projects KMS develops and certifies for carbon. We develop them under the major standards, including Verra and REDD+ and Gold Standard, and across the wider nature based solutions that bonds increasingly fund. Knowing the project and the finance together is the advantage. The wider picture sits in our carbon credit knowledge hub.
Frequently asked questions
What is a climate bond?
A climate bond, also called a green bond, is debt raised to finance projects that address climate change, mitigation, adaptation and resilience. The proceeds are ring fenced for eligible projects like renewable energy, clean transport or sustainable land use. What makes it green is the framework, certification and reporting behind it, not just the name.
What is the difference between a green bond and a climate bond?
In practice they mean the same thing, debt earmarked for climate and environmental projects. Green bond is the broader market term, while climate bond is associated with the Climate Bonds Initiative and its Climate Bonds Standard. Both follow the same logic of ring fenced proceeds, an external standard and transparent reporting.
What is a green bond framework?
A green bond framework is the document that sets out how an issuer will use the bond proceeds, how projects are selected, how the money is managed and how results are reported. It is usually aligned with the ICMA Green Bond Principles and is what an independent reviewer or verifier assesses before the bond goes to market.
Does KMS certify climate bonds?
No. KMS supports issuers with certification preparation, documentation, eligible project review and framework development. Where formal certification or verification is required, for example under the Climate Bonds Standard, that assessment is carried out by an independent Approved Verifier, and KMS coordinates the scope with the relevant verifier or external reviewer.
How does KMS help climate bond issuers and investors?
For issuers, KMS supports eligible project identification, green bond framework development, certification preparation, impact indicators and reporting. For investors, KMS supports due diligence and impact assessment, to evaluate whether the bond and underlying projects are aligned with stated climate or environmental objectives.
How do climate bonds relate to carbon projects?
They finance the same kinds of work. A climate bond can fund renewable energy, forest protection or restoration, which are the project types developed and certified for carbon credits. KMS works across project development, carbon markets and climate finance, helping connect funded projects with credible climate outcomes.
Talk to a KMS climate finance consultant
Issuing a green or climate bond, developing a green bond framework, or assessing a bond as an investor? Tell us where you are in the process and we will scope the right advisory support.
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