It ain’t a shocking or new news to us that homo sapiens are consistently destroying our mother nature and the result of our deeds would not be greatly cataclysmic, we all are very well aware of this fact. But still most of are not taking this seriously and what we are doing will ultimately lead a catastrophe for our planet.
Some countries, especially in this article I would write about Germany are taking steps regarding this matter and one of the biggest highlight of today’s news channel is their funds allotment for the projects related to the environment. Germany on 24th August, 2020, announced the details of the first green bond placing, tapping financial market to fund environmental projects.
The finance ministry said funding for climate-related programs will generate up to € 11 billion by 2020. The first question of a 10-year bond in September, would have a total of at least four billion euros. Late last year, the German Government confirmed it will introduce the bonds as part of its attempts to tackle climate change in the second half of 2020. As part of a climate plan that involves imposing a carbon tax to slash greenhouse emissions by 55 per cent by 2030 relative to 1990 rates , the government committed € 54 billion in investment to 2023. Rita Schwarzeluehr-Sutter, parliamentary state environment minister, said the bonds would add to the actions of the administration.
“Green federal bonds offer a simple opportunity, and we demonstrate how renewable and climate-friendly business practices can be made straightforward and consistent,” she said. The green bonds would be “twin bonds,” sold with the same maturity and coupon opposite the traditional federal bonds, the finance ministry stated. According to Joerg Kukies, parliamentary secretary at the finance ministry, it means creditors should be able to move their bonds from one version to the other, with the intention of rendering them more appealing to buyers.
According to the European Central Bank ( ECB), green bonds accounted for 2.85 per cent of global bond issuance in 2019, or around US$ 205 billion. Nearly half of last year’s released green bonds worldwide were in euros, the ECB added. ECB chief Christine Lagarde said in July that climate security was the bank’s top priority after launching a €1.35 trillion programme to help the European economy recover from the coronavirus pandemic. Lagarde began at the ECB late last year with a promise to follow a “greener” monetary policy, increasing the possibility that the bank may increase its portfolio’s share of climate-friendly investments.