UPM - The Biofore Company’s Post

🌱 The EU has been at the forefront of green bond issuances, however the European Securities and Markets Authority (ESMA)’s new Fund Naming Guidelines create inconsistencies with other sustainable finance regulations, like the EU Green Bond Standard, which could hamper the growth of the corporate green bond sector. 🤔 The problem: Sustainable finance regulation dealing with use of proceeds instruments (like the EU Green Bond Standard) focus on the project being financed, not the broader activities of the issuing company. However, the new fund naming rules do exclude companies based on Paris-aligned benchmarks (PAB), regardless of the project they are financing with the bond. 🔍 The impact: A bond fund investing in green bonds might either have to change its name or divest from all bonds by issuers who generate parts of their revenues from PAB-excluded activities. ⚠️ Market implications: This could limit the investable universe for corporate green bond funds, undermine the future success of the recently created EU Green Bond Standard, and make it harder for issuers like utility companies to raise capital for important green investments. 👉 Read the full press release here: https://lnkd.in/eusSrC9Z #greenbonds #esginvesting #sustainablefinance

[📆 Capital Markets' #Chronicle] 13 January 2014: publication of the first version of the Green Bond Principles 🌱 On this day 10 years ago the Green Bond Principles ("GBP") were published. The GBP are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for the issuance of a Green Bond for market participants. ➡️ ICMA - International Capital Market Association provides the Secretariat for the GBP. 📖 Green Bonds are defined in the GBP as any type of bond instrument where the proceeds or an equivalent amount will be exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible Green Projects and which are aligned with the four core components of the GBP. The four core components of the GBP are: 1️⃣ Use of Proceeds: the proceeds shall be used for eligible Green Projects, which provide clear environmental benefits and should be appropriately described in the documentation 2️⃣ Process for Project Evaluation and Selection: the issuer should clearly communicate to investors the environmental sustainability objectives of the eligible Green Projects and the process by which they are selected 3️⃣ Management of Proceeds: the proceeds should be tracked 4️⃣ Reporting: issuers should provide up-to-date information on the use of proceeds, annually until full allocation, with a list and brief description of the projects and their expected impact The GBP's key recommendation are: 📄 Green Bond Framework: issuers should explain in a framework the alignment of their Green Bond with the four core components of the GBP 💡 The GBP are intended for broad use by the market: they provide issuers with guidance on the key components involved in launching a credible Green Bond; they assist investors by promoting the availability of information necessary to assess the environmental impact of their investments; and they assist underwriters by offering key steps to facilitate transactions that preserve the integrity of the market. ✍️ The GBP are regularly updated in order to reflect the development and growth of the global Green Bond market. The current version of the GBP is dated June 2021, and an Appendix was updated in June 2022 to distinguish between “Standard Green Use of Proceeds Bonds” (unsecured bonds) and “Secured Green Bonds”, and to provide further guidance on green covered bonds, securitisations, asset-backed commercial paper, secured notes and other secured structures. #DCM #ESG #sustainablefinance #greenbonds

Sustainable Fitch has provided its Second-Party Opinion on the green finance framework of Lwart Soluções Ambientais Ltda (Lwart). LEARN MORE: https://ow.ly/ckeO50QX5io We consider debt instruments that will be issued and contracted under the framework as aligned with the ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines; and the Green Loan Principles and Social Loan Principles jointly published by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications and Trading Association. Our view is that the alignment is ‘Excellent’. Lwart is a Brazilian company that collects and re-refines lubricating oil used or contaminated (LOUC), which allows the production of high-performance base oils for the lubricant chain. #SecondPartyOpinion #ESG #SustainableFinance #Sustainability #GreenBonds

Our latest #SecondPartyOpinion (SPO) for Brookfield Renewable’s Green Finance Framework is now live. Aligned with ICMA - International Capital Market Association’s Green Bond Principles (2021), the framework attains a medium green shade. Read the full report here> https://ow.ly/zLSi50QB5qb #sustainability #sustainablefinance #financingsustainability

🌍 How do we fund a low-carbon future? Transition finance holds the key! 🌱At AG Insurance , we’re proud to support Vlerick Business School 's event on transition finance, taking place on October 1 at the AG Campus in Brussels. This event will explore the challenges and opportunities on the road to net-zero, guided by insights from the whitepaper by David Veredas  and Zik Coronado Sotillo. This is a must-attend event for anyone committed to the future of sustainable finance and net-zero goals. We’ll dive into the critical role of private investors, regulatory frameworks, and the cost of capital in driving the energy transition. As the sponsor of this whitepaper, AG Insurance highlights the importance of transition finance in accelerating the shift to a low-carbon economy, particularly within the energy sector. With immense challenges ahead, it’s crucial to rethink how we finance sustainable transformation, ensuring investments align with environmental goals while creating long-term value. I’m excited to join the panel alongside Pascal De Buck, CEO from Fluxys and Celine Vaessen, CIO, from SFPIM to exchange ideas on how financial institutions can drive this transformation. Together, we can shape a future where both investors and the planet thrive. With transition finance becoming a central focus at #COP29 in Baku, its role in global climate strategy has never been more evident. 👉 Download the whitepaper here: https://ow.ly/966450Trv5p 👉 Register for the event: https://lnkd.in/e33-4UTp #TransitionFinance #SustainableInvesting #NetZero

🌍 How do we fund a low-carbon future? Transition finance holds the key! 🌱At AG Insurance , we’re proud to support Vlerick Business School 's event on transition finance, taking place on October 1 at the AG Campus in Brussels. This event will explore the challenges and opportunities on the road to net-zero, guided by insights from the whitepaper by David Veredas and Zik Coronado Sotillo. This is a must-attend event for anyone committed to the future of sustainable finance and net-zero goals. We’ll dive into the critical role of private investors, regulatory frameworks, and the cost of capital in driving the energy transition. As the sponsor of this whitepaper, AG Insurance highlights the importance of transition finance in accelerating the shift to a low-carbon economy, particularly within the energy sector. With immense challenges ahead, it’s crucial to rethink how we finance sustainable transformation, ensuring investments align with environmental goals while creating long-term value. wim vermeir joins the panel alongside Pascal De Buck, CEO from Fluxys and Celine Vaessen, CIO, from SFPIM to exchange ideas on how financial institutions can drive this transformation. Together, we can shape a future where both investors and the planet thrive. With transition finance becoming a central focus at #COP29 in Baku, its role in global climate strategy has never been more evident. 👉 Download the whitepaper here: https://ow.ly/966450Trv5p 👉 Register for the event: https://lnkd.in/e33-4UTp #TransitionFinance #SustainableInvesting #NetZero

📊 Exciting insights from the NBER! In less than 20 years, the green bond market has evolved from a niche segment to a substantial player in the global bond landscape, with over $3 trillion issued worldwide. However, a key takeaway from their analysis reveals that many of these bonds aren't funding particularly green projects. In fact, much of the capital raised from U.S. corporate and municipal green bonds is often directed towards refinancing existing debt, sustaining ongoing projects, or starting initiatives that lack novel green components. This highlights the importance of transparency in the green bond market and prompts a reevaluation of what truly qualifies as a "green" investment. 🌍💚 #GreenBonds #Sustainability #Investing

Neste has published a renewed Green Finance Framework to align future financing activities with market best practices and standards. https://lnkd.in/grGuqAsV Katariina Perkkiö

Knorr-Bremse Issues First Green Bond 💶 Knorr-Bremse AG issues a dual-tranche bond with maturities of five and eight years with a total volume of 1,100 million Euro. 🌱 Knorr-Bremse’s 8-year inaugural Green Bond will allocate 500 million Euro proceeds to eligible green projects. 🎯Proceeds from the 5-year 600 million Euro Bond will be used for general corporate purposes including the partial refinancing of the Bond maturity in 2025. The transaction was met with strong interest from investors and was significantly oversubscribed. 👍🏼 ▶️ Read more in our latest press release. #GreenBond #TeamKnorrBremse