Green Bonds Paris Agreement
Climate borrowing is seen by the city as an attractive and cost-effective mechanism for financing public projects, as it involves a wide range of investor profiles (few investors are interested in bonds that are only a climate) and transparency. Transparency is ensured by annual reports when the issuer justifies the allocation of funds to projects that meet the criteria. The process and report are controlled by the non-financial rating agency Vigeo, thus ensuring the safety of investors in the use of their funds. In addition, transparency is an opportunity for the city to challenge and improve internal practices if necessary. In addition, the climate obligation emphasizes political priorities by halting investment. The Paris Agreement, adopted at COP21 in 2015, gave new impetus to the fight against climate change and confirmed the overall goal of limiting the rise in global average temperature to 1.5-2oC compared to the pre-industrial period. Article 2.1 confirmed Article 2.1, one of the objectives that funding must play in achieving this transition. c): “Financial flows are consistent with a way to reduce greenhouse gas emissions and improve resistance to climate change.” Green bonds are increasingly seen as one of the leading “green” financial products, which aim to finance assets compatible with a low-carbon, climate-resistant economy called low carbon climate resilient (LCCR) investments in this press release. On the one hand, market participants are excited by the rapid growth of this new market – and also by the emphasis on sustainable finance. On the other hand, some observers are concerned about two major challenges for the green bond market. First, the green bond market does not appear to be directly driving a net increase in green investment, for example.
B due to a lower cost of capital. Second, the spontaneous bottom-up approach to the evolution of the green bond market increases the reputational and legal risks associated with its environmental integrity. The green bond market must therefore meet these two challenges in order to fully exploit its potential and contribute to the transition of the CCRA. The Paris promises have the greatest impact of all the green bond levers observed in Paris and capital market leaders are increasing sustainability through the green bond The climate obligation is a kind of green bond and is subject to the Green Bond Principles. In addition, after the pre-selection, the SGF and the AEU organize an additional selection of projects according to the criteria described above and hold meetings with project managers, AEU and Vigeo representatives to refine this selection.