The market is increasingly developing tools to promote the green economy. One of the most popular and successful ones is green bonds or green bonds.
In this article, understand how this debt title works, designed precisely to stimulate investments in environmentally responsible projects, focused on their social impacts.
Check it out!
What are green bonds?
Green bonds in English) are debt securities issued by companies and financial institutions to facilitate projects with a positive environmental impact.
There is also an exclusive category for investments in climate issues, which are bonds Climate Bonds. Government funds to invest in climate and environmental issues are insufficient to make the transition towards a low-carbon economy. Green It is climate bonds characterize a way for companies and investors to move the necessary resources.
A Moody's Agency estimates that green bond issuance will reach $50 billion from 2016 onwards.
What is the difference between a green bond and a regular debt bond?
Green bonds can only be issued with the sole and public purpose of financing sustainable projects. This verification process is carried out by a special consultancy, responsible for assessing whether the funds raised will in fact be invested in environmental or climate actions.
Why choose green bonds?
The country's economic situation is not conducive to issuing debt securities, it is true. But Brazil has made strong commitments to reducing carbon emissions.
Your company has at least three reasons – and opportunities – to learn a little more about the issue of green bonds:
Anticipating a global economic trend
Once the situation stabilizes, which should happen soon, companies that are better prepared for green bonds will have a big advantage. If you follow this path, your company will be ready to operate in this promising market.
Apple, for example, has issued $1.5 billion in green bonds to finance projects in renewable energy, energy storage, energy efficiency, green buildings and natural resource conservation.
Among Brazilian companies, BRF also sold 500 million euros in green paper to increase the visibility of sustainable projects in the capital market. This is also a positioning strategy for the company.
Investing in a new market
The shift towards a low-carbon economy could be one of the ways to lead Brazil back towards recovery.
With a focus on sustainable development, the country has enormous potential for investment in renewable energy, for example.
In this sense, green bonds take center stage and can provide many resources for your business.
Show the public and investors that your company really cares about environmental issues
Companies focused on corporate sustainability, who join the green bond trend, will open new doors not only in the market, but also before the public.
It is important to add new value to your image and show with practical actions how much your company is engaged in sustainable development movements.
Recently, the Brazilian Federation of Banks (FEBRABAN) and the Brazilian Business Council for Sustainable Development (CEBDS) made the “Guide for Issuing Green Bonds in Brazil” available for public consultation. The guide is intended for participants in the fixed income market in Brazil, including companies, financial institutions and investors, as well as other agents interested in issuing Green Bonds in the national market. The launch of the final version will take place on October 21 at the Maksoud Plaza Hotel in São Paulo.
One of the best places to learn more about green bonds and other sustainable practices of the market on sustainable development is here, on our blog!
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