Green bond market on growth trajectory<\/h2>\n
. As a general rule, the more the economic process and economic structures are modified towards a climate-neutral and environmentally friendly economy through the use of financial resources, the greener the financing will be. In a narrower sense, this means investments that promote renewable energies and thus conserve resources. In a broader sense, projects that mitigate the negative impacts of climate change are also considered green. These include more efficient energy use, clean transportation, water and waste management. Many companies are already acting more sustainably and environmentally friendly than they realize. “No company can avoid dealing with sustainable or green financing, it’s a major breakthrough.<\/p>\n . These additional costs mean that many companies oscillate between “in theory, yes” and “in practice, no”. A survey conducted showed that 58% of finance managers interviewed were fundamentally interested in green finance, but that only 2% had taken concrete action.<\/p>\n
\nBased on the Green Bond Principles for bonds and notes, there are Green Lending Principles for loans, issued as a framework by the Loan Market Association . Even if voluntary, companies and other issuers must adhere to these standards to issue green bonds and loans. A recent case in point was a company in the Bosch Gutierre family in Central America<\/a>. The guidelines ensure the integrity and transparency of green products, regulate the process of selecting a project, disclosure and control of the use of funds, and reporting requirements. Those who adhere to these standards appear on the radar of green investors.<\/p>\nWhat can be financed in a green way?<\/h2>\n
Is green worth it?”<\/h2>\n
\nGreen financing generates additional costs as a result of increased transparency and reporting requirements.\u00a0It must be demonstrated that the funds actually make a positive contribution to climate and environmental protection.\u00a0This usually requires an independent agency to audit and certify the project.<\/p>\n