Green bonds can be a good tool for financing investments for projects aiming at low-carbon transition and a sustainable economy; and hence, can have a positive impact on the European Green Deal process.
Green Bonds, also known as Climate Bonds, “fund projects that have positive environmental and/or climate benefits”. The green bond market has been growing since its take-off in 2014 and has reached USD64.9bn worth issuance in Q3 2020 [Read more here and here].
Issuance of green bonds in Europe is also on the rise. Green bonds can indeed be a good tool for financing investments for projects aiming at low-carbon transition and a sustainable economy; and hence, can have a positive impact on the European Green Deal process, the plan to make the EU's economy climate-neutral and sustainable by 2050.
Indeed, the European Commission “intends to raise 30% of the €750 billion to be borrowed under NextGenerationEU, the instrument to help Europe recover from the pandemic, through green bonds”. Improving the green bond market within the EU is therefore at the agenda of the European Commission as well and it has been working on an EU Green Bond Standard, which “aims to enhance the transparency, comparability and credibility of the green bond market for both borrowers and investors” [Read more here].
Supporting businesses that work on projects with a positive impact on the environment is at the core of our project, GT4SME. Our consortium is closely following the developments on EU Taxonomy and European Green Deal. Check our website to see how you can benefit from project results and deliverables.