Everything about green bonds: Sustainable financing for the future
Green bonds are financial instruments specifically designed to fund sustainable projects, such as investments in energy efficiency, CO2 reduction, and renewable energy. Since their introduction in 2014, green bonds have become increasingly popular worldwide. This growth not only reflects a greater focus on sustainability, but also the trust investors have in this safe and predictable form of financing.
On this page, you’ll find everything about green bonds. CFP’s Green Buildings Tool not only helps in analysing green bond criteria, but also offers help for ESG and CO2 reporting. Want to know more? Read more about the Green Buildings Tool.
Why choose green bonds?
Green bonds combine financial returns with sustainability, offering unique benefits for both issuers and investors:
- Low risks: Projects like energy efficiency and renewable energy provide predictable returns and have a low-risk profile.
- Broader investor base: Green bonds appeal to both traditional and sustainable investors, expanding the pool of potential investors.
- Value creation and alignment with global trends: Green bonds ensure financing strategies align with global sustainability trends and ESG objectives, making them attractive to investors seeking stable and impactful returns.
- Transparency and trust: Impact reports for green bonds adhere to strict standards, providing investors with clear insights into the positive effects of their investments.
Green bonds and legislation
The success of green bonds is closely linked to legislation. Frameworks such as the EU Taxonomy and EPBD guidelines define which projects qualify as green. As regulations continue to evolve, rules may be refined or supplemented with additional requirements.
CFP Green Buildings supports companies in developing methodologies and impact reports that comply with the latest legislation and investor criteria, ensuring that green bond issuances remain reliable and future-proof.
How does CFP Green Buildings support green bonds?
CFP leverages the Green Buildings Tool and the extensive expertise of its consultants to quickly and accurately assess real estate portfolios against green bond criteria. We support you at every stage of the process:
- Portfolio Analysis: Identifying which assets qualify as green.
- Framework Development: Crafting clear and reliable green bond frameworks.
- Impact Reporting: Delivering transparent reports that meet international standards, such as the ICMA green bond principles.
With this approach, CFP has already supported over €10 billion in green bonds for clients such as NN Bank, Crelan, Argenta, and ING.
Success stories: NN Bank and Argenta
CFP has played a key role in successful green bond issuances for NN Bank and Argenta.
At NN Bank, CFP supported the issuance of nearly €1.8 billion in green bonds. Through a tailored methodology report and impact reporting, NN Bank transparently demonstrated how its mortgage portfolio contributes to CO2 reduction.
CFP assisted Argenta with the issuance of its first green bond worth €1 billion. Despite challenges like limited data availability in Belgium, a bespoke methodology report ensured a successful and credible issuance, attracting both new and existing investors.
Ready to get started with green bonds?
Green bonds offer a unique opportunity to combine sustainability with financing. Would you like to know how your property portfolio can qualify for green bonds? Contact us today and discover the possibilities!
News and cases about green bonds
Frequently asked questions about green bonds
What are green bonds?
Green bonds are financial instruments specifically designed to fund projects that have a positive environmental impact, such as energy saving, CO2 reduction, and renewable energy.
How do green bonds differ from traditional bonds?
Unlike traditional bonds, where the use of raised funds is not specifically tied, the funds from green bonds must be used for sustainable projects with a clearly defined environmental impact.
Why would an investor choose green bonds?
Investors opt for green bonds because, in addition to financial returns, they contribute positively to the environment. They also offer a way to invest in sustainability and often attract a stable, long-term focused investor base.
What role does legislation play in green bonds?
Legislation, such as the EU Taxonomy and EPBD guidelines, determines the criteria projects must meet to be financed through green bonds. These frameworks ensure that only genuinely sustainable projects can benefit from this form of financing.
How can CFP Green Buildings help with the issuance of green bonds?
CFP Green Buildings provides support at every step of the green bond issuance process, from analysing real estate portfolios to developing frameworks and preparing impact reports that meet international standards.
What are the benefits of green bonds for companies?
For companies, green bonds offer the opportunity to integrate their sustainability strategy into their financing plans, enhance their reputation as a sustainable enterprise, and gain access to a broader spectrum of investors.
