Climate change: BIS launches second green bond fund for central banks

Climate change: BIS launches second green bond fund for central banks

The Bank for International Settlements (BIS) has launched a euro-denominated, open-ended fund for green bond investments by central banks and official institutions. 

 

The launch follows the successful introduction of a first BIS green bond fund denominated in US dollars in September 2019.  The European Central Bank has already announced it will invest in this second bond. 

 

Together, the two BIS green bond funds will manage some $2 billion in green bonds for central banks with the expectation that the funds will continue to grow considerably.

 

The funds promote green finance through sizeable investments in environmentally friendly projects such as renewable energy production and energy efficiency, and support the adoption of best market practices and reporting standards to deepen the green bond market.

 

Further details are available here.

 

Photo Credit: Pixabay

 

 

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