These bonds are also referred to as “green twins”, because they have the same characteristics as conventional federal securities. The difference is that they have budget expenditures for climate action, environmental protection and nature conservation assigned to them.
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Green Bond Framework
The use of proceeds from Green German Federal Securities always corresponds to federal expenditure from the previous year. Spending from the previous year’s budget that qualifies as “green” is assigned to the securities. The Green Bond Framework lists five main green expenditure categories that can be assigned to Green German Federal Securities. These are:
- Transport
- International cooperation
- Research, innovation and awareness raising
- Energy and industry
- Agriculture, forestry natural landscapes and biodiversity
By specifying these categories, the framework creates transparency regarding green expenditures and their impact. The Green Bond Framework is available for download at https://www.deutsche-finanzagentur.de/fileadmin/user_upload/institutionelle-investoren/pdf/GreenBondFramework.pdf.
German government publishes the impact report for German green bonds issued in 2022
On 04 November 2024, the German government published the impact report for the Green German Federal securities that were issued in 2022. The “Green bond impact report 2022” provides investors with transparent and reliable information about the impact on the climate, environment and nature of green expenditures from budget year 2021 that were allocated to the proceeds of the Green German Federal securities issued in 2022.
In 2022, the German government issued Green German Federal securities with a total volume of €14.5bn. In the 2022 allocation report, around €16.8bn in eligible green expenditures from budget year 2021 were allocated to the proceeds from these securities.
The impact report shows the contributions that the green expenditures are making to climate protection, climate change adaptation, mitigating environmental pollution, and protecting biodiversity and ecosystems.
German government publishes “Green bond allocation report 2023”
On 28 March 2024, the German government published the allocation report for Green German Federal securities that were issued in 2023. The “Green bond allocation report 2023” provides investors with transparent and reliable information about federal budget expenditures incurred in 2022 in the areas of climate action, environmental protection and nature conservation that qualify as green and that were allocated to the proceeds of Green German Federal securities issued in 2023.