With its economic stimulus package and its Climate Action Programme, the German government is already strongly committed to climate action. To promote the idea of sustainability in the financial market, too, the Climate Action Programme 2030 includes plans to issue green bonds. These will take the form of “green twins”, with the same characteristics as conventional federal securities. However, they will have eco- and climate-friendly budget expenditures assigned to them.
Green German Federal Securities are to be issued on a permanent basis. In this way, the German government aims to inject fresh momentum into the sustainable bond market overall. The positive developments seen in this area in recent years will continue to accelerate, and more capital will be mobilised for sustainable purposes. As a result, Green German Federal Securities will help Germany to become a leading centre for sustainable finance.
Green German Federal Securities will have eco- and climate-friendly federal spending from the preceding budget year assigned to them. The Green Bond Framework contains possible green expenditure categories that can be assigned to Green German Federal Securities. Spending is grouped into five main categories:
- International cooperation
- Research, innovation and awareness raising
- Energy and industry
- Agriculture, forestry and natural landscapes
In this way, the framework creates transparency regarding these expenditure items and their impact. The Green Bond Framework is available for download at www.deutsche-finanzagentur.de.