The federal government plans to issue the first ecologically sustainable federal bond in September. The Federal Finance Agency announced that an issue volume of 8 to 12 billion euros is planned for 2020. The term of the securities should be ten years. The new bond acts as a “green twin” to the conventional ten-year federal bond.
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With green bonds, the money of the investors is used for the financing of environmental and climate protection measures. “We are thus underlining the importance of an ambitious climate and environmental protection policy for the German government,” said State Secretary Jörg Kukies of the dpa news agency.
Finance Minister Olaf Scholz and Environment Minister Svenja Schulze (both SPD) wrote in a guest post for the “Handelsblatt”: “We want to develop Germany into a leading location for sustainable finance.” The federal government is investing heavily in ecological change and will continue to increase the transparency of these investments with regular issues of such bonds. German banks would also now increasingly align their loan and investment portfolios with the goals of the Paris climate agreement.
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