The Government adopted the Green Bond Framework
At today's session, the Government of the Republic of Serbia (Serbia) adopted a Green Bond Framework, marking the first Balkan country to publicly declare a commitment to promote ESG awareness and projects in the field of climate change mitigation and environmental protection. Serbia’s Green Bond Framework will enable Serbia to access the global capital markets in ESG format.
As a reminder, in early June this year, the Government established an Interdepartmental Working Group on Green Bonds, with the task to prepare a Green Bond Framework in accordance with the standards of the International Capital Markets Association (ICMA Principles).
The Green Bond Framework provides information on how the funds obtained through the issuance of green bonds will be used to finance green projects. In line with these principles, the Green Bond Framework consists of four basic components: use of proceeds, evaluation and selection of eligible expenditures, management of proceeds and reporting.
Serbia is deeply committed to being part of the solution to the numerous global challenges resulting from climate change and pollution, such as extinction of flora and fauna, endangered ecosystems, continuous growth of waste and scarcity of natural resources. In light of such potentially devastating effects, Serbia has joined global efforts to address the threat of climate change through participation in global and regional initiatives to move towards a green economy.
By signing the Declaration from Sofia on the Green Agenda for the Western Balkans, Serbia, together with the economies of the Western Balkans, expressed its commitment to the implementation of the Green Agenda.
Green bonds have seen enormous growth in recent years thanks to the increase in climate awareness of investors and the demand for investment in this type of instrument. The Green Bond Framework will support this ambitious commitment, will broaden the investor base and help Serbia to raise awareness of the importance of sustainable financing and to promote it internationally and locally, within the financial and capital market sectors in Serbia.