European Union defines rules for Green Bonds, and can serve as an example for Brazil

Posted on 13 de Mar de 2023

European Union defines rules for Green Bonds, and can serve as an example for Brazil


What are Green Bonds?

Green bonds or green bonds are debt securities issued
specifically to finance projects with environmental benefits. Companies or governments issue private or public debt securities to raise financial resources. And they invest in projects that are known to be sustainable, both in the environmental, social and financial aspects that generate positive results for the planet, society and investors.

According to several specialists, the parameters defined by Europe can serve as a guideline for Brazil to define its own rules in the near future. But Brazil should also prioritize several very positive initiatives for the regulation of the environment, which were not contemplated in European rules, as they are not practiced in Europe.
Examples, such as the generation of biogas through a garbage biodigester, or agroforestry techniques with very low emissions, and even vegetable biofuels that have been successfully developed in Brazil for several years.

Regardless of the European definitions, Brazil must invest in standardizing these rules so that we have more equity in the values and securities traded in the country and, of course, transmitting greater security to investors who will be certain that the resources will actually be generating positive transformations for the environment.

References:

https://www.capitalreset.com/ue-chega-a-acordo-sobre-regras-para-green-bonds/

https://valor.globo.com/financas/esg/noticia/2023/03/03/novas-regras-de-green-bonds-da-uniao-europeia-podem-servir-de-exemplo-para-brasil.ghtml
https://labinovacaofinanceira.com/wp-content/uploads/2022/03/FiBraS-Mercado-FinSustentaveis_2022.pdf
https://www.capitalreset.com/o-que-sao-os-green-bonds-o-abc-da-divida-esg/