Green Bonds

The issuance of green bonds has grown from USD 600 million in 2007 to USD 1 trillion in 2022, as investors have become increasingly interested in financing projects that have a positive impact on the environment.

Green bonds can be issued by both public and private entities, and the market for green bonds is growing globally. There are a number of different green bond frameworks that have been developed by various organizations. These frameworks provide guidance on how green bonds can be used to finance and re-finance project in the field of:

• Renewable energy
• Energy efficiency (buildings, energy storage, district heating, smart grids, appliances and products);
• Pollution prevention and control;
• Environmentally sustainable management of living natural resources and land use (agriculture; fishery, aquaculture; forestry);
• Biodiversity conservation;
• Clean transportation;
• Sustainable water and wastewater management;
• Climate change adaptation;
• Circular economy adapted products;
• Green buildings that meet national or internationally recognised standards or certifications for environmental performance.

The Green Bond Principles (GBP) and the Climate Bonds Standards (CBS) are two of the most widely used frameworks, which provide guidance on how green bonds can be used.

• The International Capital Markets Association (ICMA) has developed a Green Bond Principles (GBP) document that provides guidance on the issuance of green bonds. The ICMA Green Bond Principles are voluntary guidelines that provide principles for the issuance of green bonds.
• The Climate Bonds Initiative (CBI) has also developed a set of voluntary guidelines for the issuance of green bonds, known as the Climate Bonds Standards. The Climate Bonds Standards provide guidance on the use of green bonds to finance climate change mitigation and adaptation projects.

If you are considering issuing green bonds or social bonds, we can help you to develop a green or social bond framework that meets your needs. All green bonds we help to develop are Article 8 Funds eligible according to the Sustainable Finance Disclosure Regulation (“SFDR”). We specialize in green and social bonds the field of real estate, and renewable energy.

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