2019 will see the Netherlands join fellow EU members Belgium, France, and Ireland in issuing green government bonds. Approximately EUR 3.5 to 5 billion of bonds will be issued to pay for planned government expenses which Finance Minister Wopke Hoekstra explained qualify as ‘green’.
More governments issuing green bonds could mark an important progression towards more money finding its way to green projects and governments developing with sustainability in mind. A key question is how projects and developments qualify, or whether these countries will see an uptick in greenwashing to access the funds.
Considering that companies like Apple, Toyota, Unilever and others are issuing billions in green bonds, could the rapidly growing amount of private and public green debt issued globally signal a major shift of investment and development priorities or will green bonds remain only marginal?
What role can regulators, businesses, and individuals play in encouraging further low-risk green bonds, and perhaps more importantly, high-risk green venture financing?
Read more about green bonds here.