Cyprus is expected to join the club of countries that issue eco bonds, with the first issuance of “green loans” before the end of the year, Finance Minister Constantinos Petrides said.
“The decision to proceed with the issuance of a green bond by the end of the year has been approved by the Cabinet,” said Petrides, addressing the annual general meeting of the Association of Cyprus Banks.
Petrides said the issuance “will have an incredibly positive response from the rating agencies and from the markets because it will mark the readiness of Cyprus to enter this new era.”
The issuance of green bonds requires the evaluation of eligible projects by an external consultant who will certify that they meet sustainable specifications.
At the same time, establishing appropriate monitoring mechanisms is also needed.
Green bonds have gained momentum during the last few years. It is estimated that green bonds worth around $1 trillion will be issued by 2023.
The European Commission issued the first NextGenerationEU green bond, raising €12 bln to be used exclusively for green and sustainable investments across the bloc.
It represents the world’s largest green bond issuance ever.
The NextGenerationEU green bond issuances finance green and sustainable expenditure under the Recovery and Resilience Facility.
A minimum of 37% of every Recovery and Resilience Plan must be devoted to the green transition.