Voluntary Process Guidelines for Issuing Green Bonds
The Green Bond market aims to enable and develop the key role debt markets can play in funding projects that contribute to environmental sustainability. The Green Bond Principles (GBP) promote integrity in the Green Bond market through guidelines
that recommend transparency, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to such projects. With a focus on the use of proceeds, the GBP aim to support issuers in transitioning their business model towards greater environmental sustainability through specific projects.
Issuance aligned to the GBP should provide an investment opportunity with transparent green credentials. By recommending that issuers report on the use of Green Bond proceeds, the GBP promote a step change in transparency that facilitates the tracking of funds into environmental projects, while simultaneously aiming to improve insight into their estimated impact.
The GBP provide high level categories for eligible Green Projects in recognition of the diversity of current views and of the ongoing development in understanding of environmental issues and consequences, while liaising when needed with other parties that provide complementary definitions, standards and taxonomies for determining the environmental sustainability of projects. The GBP encourage all participants in the market
to use this foundation to develop their own robust practices, referencing a broad set of complementary criteria as relevant.
The GBP are collaborative and consultative in nature based on the contributions of GBP Members and the wider community including Observers, and are coordinated by the Executive Committee. They are updated typically once a year, reflecting the development and growth of the global Green Bond market.
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