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Climate Bond Certified Bonds
In early 2016, MTA requested, and the Climate Bonds Standard Board of the Climate Bonds Initiative (CBI) approved, the designation of MTA’s Transportation Revenue Bonds, Series 2016A as “Climate Bond Certified” pursuant to the Low Carbon Transport criteria (the “Climate Criteria”) under the Climate Bonds Standard 2.0. As part of the certification requirement, MTA engaged Sustainalytics as an independent verifier to review MTA’s 2010-2014 Capital Program to identify projects with expenditures that met the Climate Criteria. Sustainalytics reviewed $12.6 billion of spending and concluded that projects totaling $11.3 billion, or 89.7%, qualified under the Climate Criteria, making them eligible projects for Climate Bonds Initiative (“CBI”) certification. CBI and MTA agreed that while MTA’s pooled funding of its capital projects makes tracking proceeds to specific bond transactions prior to issuance impractical, the inherent benefit of MTA’s Transit and Commuter Systems and the ongoing support and maintenance of them are compatible with an emissions trajectory consistent with the principles underlying the Climate Criteria. After an analysis of MTA’s Capital Program elements, CBI agreed to certify up to a maximum of $11.3 billion of bonds issued by MTA for credits that fund the Transit and Commuter Systems portion of its Capital Programs pursuant to an Application and Agreement for Climate Bond Certification dated October 21, 2019. In January 2017, the CBI implemented the Climate Bonds Standard 2.1, which created a programmatic approach specifying the ability to identify projects as a pool, similar to the approach MTA has taken since its inaugural issuance in 2016. MTA has issued CBI certified bonds pursuant to both Climate Bonds Standard 2.0 and Climate Bonds Standard 2.1.
Subsequently, MTA engaged First Environment, Inc. as an independent verifier to review MTA’s 2015-2019 Capital Program. First Environment, Inc.’s review of MTA’s 2015-2019 Capital Program concluded that 93.2% of the program’s projects, totaling $28.7 billion, qualify as eligible projects for CBI certification. In July 2021, CBI approved the ongoing programmatic certification of future MTA bond issuances supporting the 2015-2019 Capital Program under the Climate Bonds Standard 3.0 and the sector eligibility requirements of Land Transport Criteria Version 2. Pursuant to an Addendum, by and between CBI, MTA, MTA Bridges and Tunnels, and the State of New York, to the Application for Climate Bond Certification dated October 21, 2019, CBI agreed to certify bonds issued by MTA, MTA Bridges and Tunnels, and the State of New York up to an additional $28.7 billion of bonds for such projects, resulting in an aggregate CBI approval of $40.0 billion of bonds.
Under the programmatic approach, it is possible that MTA CBI certified bonds may fund or refund projects not verified by the independent verifier as meeting Climate Criteria in a reviewed capital program but all projects funded are contained in an approved transit or commuter capital program. Additionally, some of these projects may have been funded by other resources available for MTA’s Capital Programs.
Below are the lists of bonds issued that have been designated as Climate Bond Certified.