Duh Test

What primary objective does the bottom-up tracking method pursue?

• Identify supply–demand gaps in green lending
• Comply with Basel III capital rules
• Price carbon into loan rates
• Forecast FX risk

Answer explanation

Tracking quantifies the gap between existing green lending and estimated

Which organization coordinates the Green Bond Principles (GBP)?

• World Trade Organization
• International Capital Market Association (ICMA)
• International Energy Agency
• European Central Bank

Answer explanation

ICMA convenes and updates the Green Bond Principles.

In 2014 the total dollar amount of syndicated loans allocated at least partly to green projects was closest to (See Exhibit 4):

• $ 90 billion
• $ 165 billion
• $ 300 billion
• $ 500 billion

Answer explanation

Exhibit 4 totals green-attributed syndicated loans at $ 164.7 bn.

The proxy matrix classifies Clean Energy loans as what percent green?

• 10 %
• 17 %
• 50 %
• 100 %

Answer explanation

Table 6 lists Clean Energy loans as 100 % green.

Which methodology step rolls project-level data up to a country total?

• Aggregate
• Define
• Estimate
• Compare

Answer explanation

“Aggregate” is Step 3 of the four-step method.

How many individual syndicated loans closed in 2014 are analyzed in the case dataset?

• 1 200
• 2 860
• 4 412
• 6 750

Answer explanation

4 412 syndicated loans closed in 2014.

The overall green share of 2014 syndicated loan dollars is about:

• 15 %
• 25 %
• 35 %
• 45 %

Answer explanation

Green share equals 14.95 % of $ 1.1 trn loan value.

A major challenge to bottom-up tracking highlighted in Section 2 is:

• Inconsistent “Use of Proceeds” tags
• Negative real interest rates
• Saturated bond demand
• Over-capitalized banks

Answer explanation

Challenge #1 is inconsistent “Use of Proceeds”.

The proxy green share assigned to Real Estate projects is approximately:

• 7 %
• 17 %
• 25 %
• 50 %

Answer explanation

Real Estate proxy is 17 %.

The proxy green share for the Automobile sector is:

• 0.1 %
• 10 %
• 13 %
• 100 %

Answer explanation

Automobile proxy is only 0.1 %.