Green bonds enable capital-raising and investment for new and existing projects with environmental benefits. The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. GBP-aligned issuance should provide transparent green credentials alongside an investment opportunity. 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 to environmental projects, while simultaneously aiming to improve insight into their estimated impact. The GBP, updated as of June 2021, 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 issuance of a Green Bond. The GBP recommend a clear process and disclosure for issuers, which investors, banks, underwriters, arrangers, placement agents and others may use to understand the characteristics of any given Green Bond. The GBP emphasise the required transparency, accuracy and integrity of the information that will be disclosed and reported by issuers to stakeholders through core components and key recommendations.
For additional information on how to interpret this guidance especially for its practical application for transactions, as well as in the context of market developments and complementary initiatives, see the Guidance Handbook.
In June 2022, Appendix 1 of the GBP was updated to make a distinction between “Standard Green Use of Proceeds Bonds” (unsecured debt obligation) and “Secured Green Bonds” and to provide further guidance on green covered bonds, securitisations, asset-backed commercial paper, secured notes and other secured structures.
The Green Bond Principles (GBP) 2021 (with June 2022 Appendix 1)
Translations of the Green Bond Principles
Please note that the following translations are related to the 2017, 2018, 2021 and 2021 (with June 2022 Appendix 1) GBP editions, therefore the edition that each translation currently refers to is indicated below. They are being updated with the 2021 changes progressively.
FAQs
The Green Bond Principles are voluntary process guidelines that neither constitute an offer to purchase or sell securities nor constitute specific advice of whatever form (tax, legal, environmental, accounting or regulatory) in respect of Green Bonds or any other securities.
What are the 4 principles of green bond? ›
Green Bond Frameworks Issuers should explain the alignment of their Green Bond or Green Bond programme with the four core components of the GBP (i.e. Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting) in a Green Bond Framework or in their legal documentation.
What are the green bond principles of ICMA 2014? ›
The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. GBP-aligned issuance should provide transparent green credentials alongside an investment opportunity.
What are the ICMA principles? ›
The Principles
They are voluntary guidelines, managed by its members and observers, providing best practices on how to issue Sustainable Bonds. The International Capital Market Association (ICMA) provides the Secretariat to the Principles since its appointment by the Executive Committee in 2014.
What are the green bond rules? ›
Issuance requirements of Green Bonds
A green bond is like any other bond where a debt instrument is issued by an issuer for raising funds from investors. However what differentiates a Green bond from other bonds is that the proceeds of a Green Bond offering are 'ear-marked' for use towards financing 'green' projects.
What are the project categories for ICMA green bond? ›
The GBP explicitly recognise several broad categories of eligibility for Green Projects, which contribute to environmental objectives such as: climate change mitigation, climate change adaptation, natural resource conservation, biodiversity conservation, and pollution prevention and control.
What is the ICMA framework? ›
ICMA serves as Secretariat to the Green Bond Principles (GBP), the Social Bond Principles (SBP), the Sustainability Bond Guidelines (SBG) and the Sustainability-Linked Bond Principles (SLBP) - collectively known as "the Principles", providing support while advising on governance and other issues.
What is a green bond framework? ›
The Green Bond Framework defines the process to check whether a green bond is also green according to Robeco's internal criteria, the green bond guidelines. The result of this 5-step process is a “pass” or “no-pass” and is written down in a separate report called a 'green bond report'.
What are the blue bonds for ICMA? ›
Blue Bonds and Blue Loans are innovative financing instruments that earmark funds exclusively for ocean-friendly projects and critical clean water resources protection.
What is ICMA green bond Principles 2018? ›
The 2018 edition of the GBP remains framed by four core components (Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting), as well as recommendations for the use of external reviews.
The Social Bond Principles are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Social Bond market by clarifying the approach for issuance of a Social Bond.
What are the core values of the ICMA? ›
These core values—Ethical, Leadership, Accountable, Transparent, Respectful, Collaborative, and Disciplined—guide our actions in conducting business worldwide.
What is the green bond according to ICMA? ›
Green Bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible Green Projects (see section 1 Use of Proceeds) and which are aligned with the four core components of the GBP.
What did ICMA stand for? ›
International City/County Management Association is the leading organization of local government professionals dedicated to creating and sustaining thriving communities throughout the world.
What are the eligible green projects for ICMA? ›
The eligible Green Project categories, listed in no specific order, include, but are not limited to: renewable energy (including production, transmission, appliances and products); energy efficiency (such as in new and refurbished buildings, energy storage, district heating, smart grids, appliances and products);
What are the ethical standards of the ICMA? ›
Download the ICMA Code of Ethics
Leadership in a management structure committed to equity, transparency, integrity, stewardship of public resources, political neutrality, and respect for the rights and responsibility of elected officials and residents strengthens democratic local governance.
What are the principles of Citi green bond? ›
Citi's Green Bond Framework has been developed in line with the ICMA Green Bond Principles and follows the four key components: Use of proceeds; process for project evaluation and selection; management of proceeds; and reporting.
Green bonds enable capital-raising and investment for new and existing projects with environmental benefits. The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. GBP-aligned issuance should provide transparent green credentials alongside an investment opportunity. 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 to environmental projects, while simultaneously aiming to improve insight into their estimated impact. The GBP, updated as of June 2021, 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 issuance of a Green Bond. The GBP recommend a clear process and disclosure for issuers, which investors, banks, underwriters, arrangers, placement agents and others may use to understand the characteristics of any given Green Bond. The GBP emphasise the required transparency, accuracy and integrity of the information that will be disclosed and reported by issuers to stakeholders through core components and key recommendations.