What is the role of policy makers in the transition to a sustainable economy? Are they part of the systemic approach as mentioned by Mr. Boileau? According to him, ‘policy makers need to offer initial incentives, and allow the private sector to take over afterwards’. Mr. Marius Cara, strongly agreed with this statement. By issuing the first green bond (originally named ‘climate-awareness’ bond) some 10 years ago, the EIB wanted to incentivize financial institutions to mobilize capital towards greener investments. This innovative approach clearly worked. Current green bond issuance has been increasing YoY, and the market share in EUR bond supply has reached close to 9% in H1 20191. Nonetheless, Mr. Cara did emphasize the need to standardise not only the green bond’s use of proceeds (i.e. which green projects are allowed to be financed), but also the area of green bond verifiers. By doing so, Mr. Cara urged fellow institutions and policy makers to increase transparency for investors. He pushed them to create a common framework for the industry to avoid the occurrence of so-called ‘green washing’.

1EUR supply ex-govies


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