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Issuers looking to support their sustainability strategy through sustainable finance solutions have several options, from sources of debt to equity instruments. These solutions include Green Loans, Sustainability Linked Loans, Green Bonds, Sustainable Bonds and more.

What are Green Bonds? Green bonds are like any other conventional bonds except that the issuer promises to use the proceeds for green investments, green projects or eligible green assets being refinanced.

In 2019, investors globally continue to be concerned about climate change risks and the transition to a low-carbon economy. As investor awareness around climate risk has grown, so too has the sustainable finance market. Sustainable finance, as defined by experts, is any form of financial service which integrates environmental, social or governance (ESG) criteria into business or investment decisions.

Global regulatory initiatives for sustainable finance will be in the spotlight this year. The European Commission’s regulatory initiatives have been the most prominent. Following on the findings of the High-Level Expert Group on Sustainable Finance (HLEG), the European Commission put together a Technical Expert Working Group on Sustainable Finance to implement some of the HLEG’s recommendations. First on its list is the creation of a green taxonomy, which is expected by the second quarter of 2019 and will be followed by a green bond standard.

Read more about creating a document that details the type of projects to be financed, use of proceeds, management of proceeds and commitment to reporting.