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IUCN NL joins effort to promote Green Bond Principles

21 January 2015

Green Bonds are an important financial instrument increasingly used to catalyze the transition to a low carbon economy by financing green property, renewable energy, new and efficient factories, and clean cars.

The Green Bond Principles are a set of voluntary guidelines, drafted by several large financial institutions and environmental groups in 2014, to provide assurance to investors about the quality of the green projects being funded. In January 2015, IUCN NL received observer status, which will allow it to provide oversight of the principles and input into their further development.

“Green Bonds are becoming increasingly popular to finance projects that have a positive impact on the environment”, said Gerhard Mulder, advisor on green financing at IUCN NL. “We must make sure that Green Bonds deliver the environmental benefits that are promised”.

The major advantage of a Green Bond is that they look like regular bonds, and thus, are well understood by investors. The only difference is that they set criteria about project selection and regularly report on how the money is spent, said Mr Mulder.

In 2014, almost EUR 37 billion of Green Bonds were issued. It is expected that this number will rise to EUR 100 billion in 2015. IUCN NL works on several green financing projects, including on climate finance through the Dutch Agro Water Climate Alliance (DAWCA).

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More articles by: Gerhard Mulder