The German government is publishing its first framework for Green German Federal Securities to strengthen the country’s position in the area of sustainable finance and make its “green” budget spending more transparent. These associated green expenditures will serve different purposes including promotion of clean transport systems, accelerate renewable energy development, support more efficient energy consumption, and advance research for sustainable alternatives.
This framework presents the various categories of green spending by the German government. A total amount of more than € 12.7 billion has been classified as green expenditure in five main sectors: transport; international cooperation; research, innovation and awareness raising; energy and industry; and agriculture, forestry and natural landscapes. The new Green German Federal Securities will be issued alongside existing, conventional federal securities, with exactly the same characteristics. The German government’s aim is to issue green twins for standard maturities on the conventional curve.
On this occasion, Rita Schwarzelühr-Sutter, Parliamentary State Secretary at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, commented, “With its climate package, the German government has set the course towards huge investment in green and climate-friendly technologies. The finance industry can also contribute to reaching this objective. Green federal bonds create a clear incentive. In this way, we are showing how green and climate-friendly economic activities can be made transparent and predictable.”