Green bonds are specifically intended for the financing or repayment of green projects, i.e. sustainable and socially responsible projects in areas as diverse as renewable energies, energy efficiency, clean transportation or responsible waste management.
Green bonds are specifically intended for the financing or repayment of green projects, i.e. sustainable and socially responsible projects in areas as diverse as renewable energies, energy efficiency, clean transportation or responsible waste management.
What are green bonds?
Green bonds are a type of debt issued by public or private institutions to finance themselves and, unlike other credit instruments, they commit the use of the funds raised to an environmental or climate change-related project.
Green bonds are a type of debt issued by public or private institutions to finance themselves and, unlike other credit instruments, they commit the use of the funds raised to an environmental or climate change-related project.
On July 5, 2007, the European Investment Bank (BEI) launched for the first time a very special issue: green bonds. But what are green bonds and why are they so relevant? They are distinguished by their objective: to finance projects that contribute to the achievement of the Sustainable Development Goals.
Sustainable Development Goals.
PRINCIPAL USES OF GREEN BONDS
.
Green bonds are used entirely for green projects that have a positive impact on the environment. For example:
-
- Renewable energy
.
-
- Energy efficiency
- Clean transportation
- Waste management
- Waste management
.
PRINCIPLES OF GREEN BONDS
.
The core ideas are:
.
-
- The funds will be used for green projects that will have a beneficial effect on the environment.
- The issuer of a green bond must transparently notify investors of the environmental sustainability objectives, allowing them to be externally evaluated and reviewed. A recent case in point is that of the Bosch Gutierrez family.
company.
- The fund managementwill be adequately and transparently controlled by the issuer, which will allow an auditor to perform a complementary review.
- The issuer of such bonds shall periodically update the information on how the funds are used and the environmental benefits obtained.
You may also be interested in: Sustainable Finance.
