Climate Transition Benchmark and Cross-currency interest rate swap: Difference between pages

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''Sustainability - investment - climate change - Paris Climate Agreement - European Union (EU)''.
(CCIRS).  


The EU Climate Transition Benchmark is a standard for investments, indicating that the proposed investment is on a decarbonisation trajectory.
A longer term derivative contract which is used to transform longer term interest rate-related obligations or assets in one currency, into another currency.


For example, a GBP-based firm with a USD borrowing might use a CCIRS to transform the USD borrowing into a synthetic GBP borrowing.


This is a relatively less demanding standard, compared with the related - and more rigorous - EU Paris-aligned Benchmark (PAB).
The concept of a CCIRS was developed from the (same-currency) interest rate swap market, which most commonly swaps fixed and floating interest rate streams in the same currency.


The aims of the climate benchmarks are to improve transparency and comparability, to reallocate capital towards climate-friendly investments and to deter misleading low carbon claims, known as greenwashing.
Same currency interest rate swaps exchange interest flows in the same currency (but calculated on different bases).  


Cross currency interest rate swaps exchange interest flows denominated in different currencies.
Cross currency interest rate swaps usually exchange currency principal amounts at their maturity (unlike same-currency interest rate swaps).
Also known as Currency interest rate swap or Foreign currency swap.


== See also ==
== See also ==
* [[Benchmark]]
* [[Asset-based swap]]
* [[Benchmarking]]
* [[Currency risk]]
* [[Benchmarks Regulation]]
* [[Currency swap]]
* [[Climate benchmark]]
* [[GBP]]
* [[Climate change]]
* [[Interest rate swap]]
* [[Decarbonisation]]
* [[Swap]]
* [[European Union]] (EU)
* [[Synthetic]]
* [[Greenwash]]
* [[USD]]
* [[Paris-aligned Benchmark]]  (PAB)
* [[Sustainability]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 12:43, 5 August 2013

(CCIRS).

A longer term derivative contract which is used to transform longer term interest rate-related obligations or assets in one currency, into another currency.

For example, a GBP-based firm with a USD borrowing might use a CCIRS to transform the USD borrowing into a synthetic GBP borrowing.

The concept of a CCIRS was developed from the (same-currency) interest rate swap market, which most commonly swaps fixed and floating interest rate streams in the same currency.

Same currency interest rate swaps exchange interest flows in the same currency (but calculated on different bases).

Cross currency interest rate swaps exchange interest flows denominated in different currencies.

Cross currency interest rate swaps usually exchange currency principal amounts at their maturity (unlike same-currency interest rate swaps).

Also known as Currency interest rate swap or Foreign currency swap.

See also

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