Green bond is an English term that refers to green bonds.
Initially, this particular type of bond was issued essentially by supranational financial institutions such as the World Bank or the European Investment Bank, but over time the concession was opened up to also private companies, municipalities and other state bodies.
These are bonds issued to finance projects of social and environmental influence and related to the theme of sustainability such as energy efficiency, renewable energy, sustainable use of land, water and waste treatment.
A critical issue related to green bonds is the lack of a global standard to certify these bonds as "green"; in 2017 a first step was taken in this regard by International Capital Market Association (ICMA) which identified guidelines and 4 principles for these bonds:
- Clarity on the destination of the proceeds from the issuer of the security;
- Special procedures in the evaluation and selection of projects according to particular categories;
- Transparency;
- Report on the progress of project implementation.
Green bonds, being bonds, have been traded on the MOT and ExtraMOT markets since 2017 with their own particular segment on both markets.
