The German government published a framework for the country's first green bonds to be issued in September, Ministry of Finance (BMF) announced on Monday.
With the green bonds, Germany was aiming to "create transparency for green budgetary expenditures" and to strengthen the sustainable finance location in Germany, according to a joint press release by BMF, Germany's Finance Agency and Ministry for the Environment (BRU).
The so-called "green twin" had the same attributes as regular 10-year securities by the government, according to BMF. However, the green bonds were additionally assigned to budgetary expenditures that "contribute to climate and environmental protection."
The green government bonds would be issued annually. "Our innovative twin concept is designed to attract new investors and emitter to the green bond market and to act as a catalyst to channel more investment into a greener economy," said Joerg Kukies, secretary of state in the BMF.
The German government would use the money from the green bonds to reduce CO2 emissions from vehicles, to accelerate the transition to an economy largely operating on renewable energies as well as to promote research "for a more sustainable future," the press release noted.
The new framework identified expenditures of around 12.7 billion euros (15 billion U.S. dollars) from the "key sectors" of transport, international cooperation, research, innovation and information, energy and industry as well as agriculture, forestry and natural landscapes.
Editor: Galia
