Green bonds are special bonds with the aim of promoting investments in environmentally friendly projects.

If banks, companies or a government would like to issue Green Bonds, various guidelines are available. A common standard for guidance is the Green Bond Principles (GBP) of ICMA – International Capital Market Association.

These consist of four core criteria:

1. environmental benefit: clearly definable, evaluated and, if possible, quantifiable.

2. earmarking: clear objectives and project selection

3. transparency: use of proceeds traceable, exclusively for environmentally friendly projects

4. reporting: comprehensive information and progress reports available