National | PANORAMA

Creating the legal and regulatory enabling environment for green bonds in Zambia

The development of legislation and regulations was the foundation for establishing a green bond market in Zambia. The 2019 Green Bonds Guidelines are the main outcome of this process and serve as the enabling regulatory framework for green bonds issuances in the country. They were officially gazetted and developed in line with the International Capital Market Association’s (ICMA) Green Bond Principles, a voluntary protocol for the issuance of green bonds.

The Guidelines comprehensively cover the requirements for issuing green bonds, including the engagement of an independent external reviewer and the submission of a detailed, green bond framework to the Securities and Exchange Commission (SEC). This framework must explain the project selection criteria to be used, how funds will be utilized, the management of proceeds (the funds raised from selling the bonds), and how environmental objectives will be achieved. Together, these elements promote transparency, accountability, and investor confidence.

To complement the Guideline, the Green Bonds Listing Rules were also developed, providing a detailed pathway for issuers to list green bonds on the Lusaka Securities Exchange (LuSE). They also establish procedures for evaluating the environmental credentials of green bonds and reporting impacts, contributing to an orderly market.

The mobilization and coordinated efforts of all relevant stakeholders in capital markets and regulatory bodies, such as the SEC and the LuSE, are essential for the development and approval of the guideline and associated rules.

Developing green bonds based on clear legislation and regulations, transparent and accountable mechanisms, and adherence to international standards is crucial to building investor confidence and, consequently, ensuring the bond’s success in mobilizing resources for climate and biodiversity projects. This is particularly important for countries where lower credit ratings could affect the bond’s perceived creditworthiness.

In addition, developing a green bond market is a time-consuming process that requires engagement from multiple stakeholders and ongoing consultations. Therefore, it is essential to manage stakeholders’ expectations and allocate sufficient time to each stage.

Finally, although the effective issuance of green bonds must include independent reviewers, it was identified that this expertise did not exist locally. At the same time, contracting foreign reviewers is costly and time-consuming. Hence, it is important that initiatives for the development of green bond markets also include professional development initiatives to train domestic independent reviewers.

The Securities Green Bonds Guidelines 2019

East and South Africa

Green Bonds in Zambia: Developing a Market to Mobilize Resources for Projects with Climate and Biodiversity Benefits

Guilherme

De Franco

Creating the legal and regulatory enabling environment for green bonds in Zambia

Bringing key stakeholders together under the Green Finance Mainstreaming Working Group

Capacity building and technical support for market developers and green bonds issuers

Creating the necessary incentives to foster the success of green bonds

An advisory board of environmental education experts and teachers

PLANET4B Case Study Advisory Board meeting

PLANET4B project

Throughout the case study process, researchers received valuable ideas and inspiration from a small advisory board. Its members were initially interviewed as environmental education experts and later invited to join the stakeholder board on a voluntary basis. One of the highlights was that the school garden coordinator teacher also became a member of this board, so we had regular input about the hands-on experience with school gardens and outdoor learning spaces. We met with the board twice every year – mostly in person, though occasionally online. During these meetings, we shared our current research findings and sought their advice on the future direction of the project. They also took part in workshops, contributing to the broader success of the PLANET4B project.

Environmental education experts and teachers who are open to innovative teaching methods

Having environmental education experts and teachers on board really helped guide the project in the right direction. We wanted to avoid duplicating already existing research, and we also valued their advice on methodologies. Having an advisory board is not essential for a project of this kind, but when feasible, it can significantly support the case study in moving in a meaningful direction. At the same time, it is important to ensure that participants are not taken for granted, and that some form of support is offered – if not financial, then through opportunities for publication, visibility, or networking. Ideally, an advisory board should include a balanced mix of experts from various fields – such as researchers, policymakers, NGOs, practitioners, and even artists or students. In this case, however, it unfortunately did not manage to represent all perspectives.

Entirety

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The Solution – State and Transition Model (STM)

The STM tracks how rangeland health changes over time, showing pathways of degradation and recovery. Developed for 22 ecological site groups, it:

Defines healthy and degraded states of rangelands.
Identifies key indicators like plant cover and soil stability.
Shows thresholds and transitions linked to grazing practices.
Provides clear guidance for sustainable stocking and management.

The model is now used in rangeland monitoring, soum-level planning, and to support value-based certification of livestock products.

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Adding value to the services offered

Improving the competitiveness of the products and services offered by FEPACOIBA, increasing conservation with local economic development under a value-added scheme based on good practices.

To achieve this, we work with responsible fishing producers, complying with closed seasons, fishing gear, and size limits. We also train tourism service providers, diversifying services from a perspective of good practices such as experiential fishing, guided tours with historical narratives, and above all, offering our local cuisine that complies with conservation criteria such as size limits and the non-use of vulnerable species.

Training in sales and responsible trade, improving customer service and developing a brand identity.
Adequate infrastructure: collection centers, safe boats, tourism promotions, points of sale.
Access to financing and institutional support.

Good practices generate trust and loyalty among customers as an added value to the product.
Experiential fishing and responsible tourism are powerful tools for diversifying income and educating visitors.
Collaboration between sectors (fishing, tourism, environment) allows for the creation of unique and integrated connections.
Local empowerment in the management and responsible use of resources is essential to promote added value based on the sustainability of coastal and marine resources.

Documentation and dissemination of results

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Political and regulatory advocacy

This consists of influencing public policies and legal frameworks in our country to ensure marine conservation and the sustainable use of resources, strengthening community governance through community participation. To ensure this process, it is very important to participate in public consultations, technical roundtables, workshops, and other activities.

Organizational capacity with community and regional leadership.
Political and local will to create regulations.
Creation and strengthening of capacities for managing participation in decision-making spaces.

Training community leaders in environmental regulations and establishing strategic alliances with government institutions has allowed us to be considered in decision-making processes.
There is still a need for clearer laws for the conservation of key ecosystems, such as mangroves, which still lack robust regulations.
Illegal fishing and pollution continue to be threats that require stronger regulations and effective enforcement.

Documentation and dissemination of results

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Consumer awareness and label visibility

Transform market demand toward sustainable options. Conscious consumers are key to pushing for changes in supply and legitimizing the label's existence.

NGOs that support the label and certified commercial partners must implement an awareness strategy, which may include training staff at processing plants and restaurants, displaying the label at affiliated locations, and developing public promotional events and informational campaigns through social media. The label image must be used in accordance with the brand manual, ensuring consistency and recognition.

Have clear and accessible communication materials.
The seal itself is an attractive and distinctive graphic identity, to which the names of other interested NGOs can be added.
At points of sale, actions should be developed or visual tools deployed to help educate consumers.

Informed retailers and consumers become allies for change.
All actions taken must seek to bring about positive behavioral change.
Educational and promotional campaigns must be ongoing, adapting the message to the target audience.
The impact of all these initiatives must be measured.

Documentation and dissemination of results

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Participation of stakeholders and institutional coordination

Build the legitimacy and sustainability of the seal by integrating it into a multisectoral collaboration ecosystem between science, business, civil society, and authorities.

Without a laboratory to perform genetic analyses or companies interested in joining the initiative, there can be no seal. Hence, all work must be collaborative. Although it is not necessary for state authorities to endorse the label, it is advisable to maintain a cordial relationship, keeping them informed of progress and inviting them to have a presence and voice at promotional events. The participation of community and scientific organizations is necessary to strengthen the credibility of the label.

The initiative must be led by a neutral technical organization. Fundación MarViva is a good example and is interested in establishing partnerships with other non-governmental organizations (NGOs) to expand the geographical reach of the seal.
The participation of scientific laboratories (e.g., COIBA AIP), businesses, and civil society is necessary. There may also be opportunities for universities to develop research projects.
There must be coordination with the authorities (e.g., fisheries, environment), although this does not mean that they must endorse the label.

Partnerships strengthen the legitimacy and sustainability of the label.

Monitoring

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Business support and continuous improvement

It seeks to facilitate the implementation of responsible practices by companies through a progressive, technical, and collaborative transition, while continuing to demand compliance with the principles of the seal.

To achieve this goal, each company must be offered a personalized support plan, through which socialization sessions, internal training, consulting, and technical visits are provided. A compliance assessment must also be carried out after 12 months, and adjustments made according to the results.

The support plan must be adapted to the reality of each company.
Periodic evaluations must be carried out and feedback sessions maintained.
It is necessary to be flexible with the commercial partner's adaptation times, without compromising the principles of the seal.

Technical support is key, as it encourages long-term business commitment.
Patience is required, as in some cases companies do not prioritize the operational changes they need to make because they do not see immediate benefits.
It is strategic to communicate, from the outset, the reputational and commercial benefits of the alliance with the seal.

Implementation

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Technology and innovation to create digital platforms that are accessible and tailored to local needs

The image shows campaign participants at the beach, in Koh Tao, with boats in the background. They are holding a sign of the campaign.

Koh Tao, Better Together and Krungthai Bank

Krungthai Bank

Krungthai Bank (KTB), a key partner in the "Koh Tao Better Together" crowdfunding campaign, developed an easy-to-use electronic donation platform integrated with the Thai tax system. The bank's innovation lab offered to create the e-donation platform. Through a QR code, Thai citizens were able to make donations in a quick, transparent, and verifiable way. The platform allows Thai donors to automatically send their donation information to the Revenue Department for tax deduction. UNDP also designed another e-donation platform for international donors.

KTB acted as the initial donor of the campaign, contributing 30% of the fundraising target. Furthermore, the bank committed to covering the remaining donations if the target was not met, which was unnecessary thanks to the success of the campaign.

Additionally, KTB provided trainings on digital financial services to boat drivers.

The key enabling factor is the establishment of effective public-private partnerships to leverage the expertise of each stakeholder. By combining BIOFIN's financial expertise, KTB's innovation, Raks Thai Foundation's experience in engaging local communities, and the government's role in overseeing financial services, it was possible to develop and disseminate an appropriate e-donation platform and run the campaign.

Another relevant condition is effective communication strategies to increase public awareness of, and access to, the e-donation platform.

It is imperative to promote partnerships and multisector engagement to address global and local challenges that are multidisciplinary by nature, from financial constraints amid a global health crisis to biodiversity and ecosystem degradation.

Moreover, it is crucial to develop solutions that reflect advancements in innovation and digitalization. When well-designed, digital tools have the potential to reach a large number of individuals (i.e., surpassing the fundraising target) and simplify processes (i.e., connecting the e-donation platform with the tax system). Equal importance must be given to the training of locals on these digital tools, enabling just and equitable access.

"Koh Tao Better Together" page on Krungthai Bank's website.