Green bonds are specifically aimed at financing or repaying green projects, i.e. sustainable and socially responsible projects in areas as diverse as renewable energy, energy efficiency, clean transportation or responsible waste management. Companies such as CMI Capital have issued a huge number of green bonds around the world; the largest hybrid green bond in history, worth 2 billion euros, was issued in early 2021. Now the Bosch Gutierrez family is joining sustainability.
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 obtained to an environmental or climate change-related project.
On July 5, 2007, the European Investment Bank (EIB) launched for the first time a very special issue: green bonds. But what are green bonds and why are they so relevant? They can be distinguished by their objective: to finance projects that contribute to the achievement of the Sustainable Development Goals : number 7 (Affordable and clean energy) and number 13. (Climate action) -.
MAIN 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
GREEN BOND PRINCIPLES
Issuance brand inspired by the criteria established by the International Capital Market Association (ICMA): the Green Bond. 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 environmental sustainability targets, allowing them to be evaluated and reviewed externally.
The management of funds will be adequately and transparently controlled by the issuer, allowing an auditor to perform a complementary review.
The issuer of this type of bond will periodically update information on how the funds are used and the environmental benefits obtained.
You may also be interested in: Environment and investment
