Romania's Ministry of Finance launches framework for issuing green bonds

Alina Oprea
The Ministry of Finance has published the Green Bond Framework of Romania. This is the reference document for the issuance of green bonds at the sovereign level to finance the expenses related to projects that contribute directly to the fulfillment of Romania's environmental and sustainable development objectives. The initiative reaffirms Romania's commitment to the 2030 Sustainable Development Goals and National Contributions within the framework of the Paris Agreement.

By issuing green bonds, the Ministry of Finance aims to promote the transition to a greener economy, further diversify the investor base for government securities, and attract investors who are exclusively or predominantly interested in financial instruments that generate a positive impact on the environment or a beneficial social impact, respectively an improvement of the governance framework.

"The launch of this framework is an essential step in expanding financing for the entire green agenda in Romania. In addition to the potential to diversify the public debt investor base, we expect the green bond issue to catalyze new green bonds issued by the private sector by creating an important reference in the foreign market for Romanian corporate bonds. From the development of the metro network, the railways, and the establishment of new areas of urban forests, all are examples of projects that we will be able to finance through investors interested in this type of bonds", said Marcel Boloș, Minister of Finance.

The framework, developed by the Ministry of Finance and approved by an inter-ministerial committee, outlines the governance structure established to ensure the selection of projects and the use of proceeds to meet market expectations.

The World Bank provided technical assistance for the establishment of Romania's green bond program.

The framework has been assessed as "medium green" based on S&P's analysis of eligible projects, the estimated allocations for these projects, and the expected impact on environmental protection and the fight against climate change.

Romania's sovereign green bond framework highlights our country's commitments, current environmental agenda, as well as green financing plans. It lists the eligible projects that can be financed by issuing green bonds and the categories of activities associated with environmental benefits.

Projects labeled as green include those related to renewable energy production, energy efficiency, pollution prevention and control, clean transportation, sustainable water and wastewater management, climate change adaptation, green buildings, and environmentally sustainable management of living natural resources and land use.

Among the most important green projects eligible for financing are the development of the metro transport network in the cities of Bucharest and Cluj-Napoca, the electrification of the railway to ensure fully electric railway services in the main urban areas in Romania (county residences and other cities with over 50,000 inhabitants), rehabilitating existing defense lines by the EU Flood Directive and the National Flood Risk Management Strategy, increasing the energy efficiency of the building stock and establishing new urban forest areas.

The Framework also defines the process of evaluating and selecting eligible expenditures for green bond financing, ensuring that the funds raised are directed exclusively to eligible expenditures with a positive impact on the environment. The Framework presents the procedures for managing the funds raised and the parameters adopted for monitoring, measuring, and publishing reports on the allocation and impact of the funds raised, as well as the possibilities for external evaluation.

RECOMMENDED
78 million tons of clothes become waste every year
Industry

78 million tons of clothes become waste every year

78 million tons of clothes become waste every year, with serious consequences for the environment. Clothing production has doubled in recent years due to overconsumption. We throw away an average of 11 kg of clothes annually, after only 7 wears. Humana People to People representatives draw attention to the negative impact that the overconsumption of such products has on the environment and, ultimately, on people's health.

35 tons of oil leaks into the Danube in Serbia
Environment

35 tons of oil leaks into the Danube in Serbia

35 tons of oil products leaked from a ship under the Bulgarian flag on the main course of the Danube, near Cělarevo (Serbia), at km 1287. This information was received by the Ministry of the Environment, Waters and Forests, and the National Administration "Romanian Waters" - Department of Emergency Situations, through the secretary for border waters within the Romania-Serbia bilateral agreement, in the afternoon of June 20.

Kärcher invests €100,000 in equipping HQ with PV panels
Energy

Kärcher invests €100,000 in equipping HQ with PV panels

Kärcher, a company in the field of cleaning technology, has invested almost €100,000 in equipping the headquarters inaugurated last year in Pipera with photovoltaic panels. To date, the company has reduced its costs for conventional consumption by approximately 45%.

Germany promotes sustainable tourism in Bucharest
Industry

Germany promotes sustainable tourism in Bucharest

Germany promotes sustainable tourism in Bucharest. On Friday and Saturday, June 16 and 17, between 10:00 and 20:00, the German Tourist Office organizes the German Days festival, an event that will promote sustainable travel to the main European tourist destination for Romanians.

Romania reduces fossil gas consumption by 25%
Environment

Romania reduces fossil gas consumption by 25%

Between August 2022 and January 2023, Romania is managing to reduce fossil gas consumption by approximately 25%, according to a report published by CEE Bankwatch Network. According to the report, Romania allocates four times more European funds for fossil gas, despite the climate objectives. Between 2014 and 2020, fossil gas-based projects in Romania and Poland benefited from €230 million and €1.3 billion respectively from European funds.

Timișoara City Hall is paying its obligations for the environment
Finance

Timișoara City Hall is paying its obligations for the environment

Mayor Dominic Fritz is announcing that the Municipality has paid its environmental payment obligations for the 2016-2020 period. The City Hall of Timisoara paid last week the last installment of the obligations of RON5.6 million (€1.12 million) calculated by the Environmental Fund Administration (AFM), for the mentioned interval.

RECOMMENDED FROM THE HOME PAGE
READ MORE
Green Forum  |  15 July, 2024 at 11:00 AM
Green Forum  |  15 July, 2024 at 10:00 AM