Italy wants to issue its first green government bonds

The Ministry of Finance launches BTPs to support eco-sustainable expenses and investments for the protection of the sea, the environment and the momentum of the circular economy

Savings Photo by Nattanan Kanchanaprat from Pixabay From energy efficiency to biological diversity , from the circular economy to scientific research: these are only a few eligible sectors for the issuance of green debt securities with which the Italian State plans to finance public spending in favor of the environment. This is what emerges from the reference framework with which the Ministry of Economy and Finance outlined the criteria for the next issue of green multi-year treasury bills. With the sovereign green bond, already provided for by the 2020 Budget law, the financial instruments of the State will be able to be part of the country's environmental policy, keeping seven of the 17 objectives of the UN 2030 Agenda as a guiding star.

Environmental objectives , as outlined by the European taxonomy of sustainable activities, will be: climate change mitigation and adaptation, sustainable use and protection of water resources and the marine environment; transition to a circular economy; pollution prevention and control; protection, improvement and restoration of biodiversity, ecosystems and environmental services.

For the issuance of green government bonds, an inter-ministerial committee has been set up in charge of identifying information on expenses potentially eligible for funding, which include also renewable sources for the production of electrical and thermal energy, the prevention and control of pollution, environmental protection and transport. The latter will be the chapter that will receive the most important share on a total "theoretical maximum limit" of 35 billion euros, according to reports from the Mef, reports Il Sole 24 Ore.

The proceeds collected will be managed in the same way as for other ordinary government bonds, but neither the rates nor the maturities they may have are yet known. A global call dedicated to institutional investors, to whom the green btp (for now the general public is excluded) listed on Mot and Mts will be offered, was organized for Monday afternoon.

Every year the report will be published on how the resources collected were allocated in previous years, through the Italian sovereign green bond allocation and impact report. This will illustrate the progress in the disbursement of the sums provided for by each issue, at least by categories of expenditure, the progress of the works financed and the data on the environmental impact achieved by the expenditure.

In the meantime, it is already clear that some sectors will be completely excluded: extraction, processing and transport of fossil fuels; nuclear fission; energy plants (including biomass) with CO 2 emission levels exceeding 100g CO 2 / kWh; processing and production of alcoholic beverages; military contracts; diocus of gambling; production of weapons; processing and production of tobacco derivatives; mining activity.


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Environment Finance Italy globalData.fldTopic = "Environment, Finance, Italy"

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