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10 May 2022

Climate action

German government publishes “Green bond allocation report 2021”

  • Version 10 May 2022
  • Type brochure
Cover "Green bond allocation report 2021"
  • Version 10 May 2022
  • Type brochure

On 10 May 2022, the German government published the allocation report for Green German Federal Securities that were issued in 2021. The “Green bond allocation report 2021” provides investors with transparent and reliable information about federal budget expenditures incurred in 2020 in the areas of climate action, environmental protection and nature conservation that qualify as green and were allocated to the proceeds of Green German Federal Securities issued in 2021.

The German government issued Green German Federal Securities worth €12.5bn in 2021. In the 2021 allocation report, €13.4bn in eligible green expenditures from budget year 2020 were allocated to the proceeds from these securities.

The eligible expenditures can be broken down into the five sectors of the Green Bond Framework as follows:

More than half of the 2021 issue volume has been allocated to the maintenance and development of the transport sector. The purpose of these funds is to make passenger and freight transport greener and more environmentally friendly.

Approximately 24% of the eligible green expenditures are dedicated to the international cooperation sector. Germany supports emerging and developing countries in their efforts to transition to more environmentally sustainable economies.

About 8% of the green expenditures have been allocated to the research, innovation and awareness-raising sector. The objective is to develop solutions for combating climate change, preserving ecosystems and biodiversity and protecting natural resources.

The energy and industry sector accounts for another 8% of eligible expenditures aimed at accelerating the transition to an economy based largely on renewable energy and to an eco-efficient use of energy and resources.

The German government supports sustainable agriculture and forestry, coastal defences and flood protection as well as the conservation of natural habitats and biodiversity (approximately 4% of eligible expenditures).

The allocation of proceeds to green expenditures underwent third party verification.

The issuance of Green German Federal Securities enhances transparency regarding the use of funds and creates various incentives for other market participants to also issue green securities. It also strengthens Germany’s position as a leading centre for sustainable finance. The volume of Green German Federal Securities issued will be increased further in 2022 (from €12.5bn in 2021 and €11.5bn in 2020).