SAEE mulls "green" bond mechanism for renewable energy projects
The introduction of "green" bonds as a financial tool for the implementation of renewable energy was the main theme of the first Ukrainian forum on climate finance,
The introduction in Ukraine of “green” bonds as a tool for the implementation of renewable energy was the main theme of the first Ukrainian Climate Finance Forum. Organised by Biofuture Systems for Ecology (BFSE), an actor in the Ukrainian climate finance market and partners of the Climate Bonds Initiative, a global organisation working solely to mobilise the US$100 trillion bond market for climate change solutions.
Speaking at the event, Sergei Savchuk Chairman and Head of State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE)State Energy Efficiency Agency said that Ukraine, like other signatory countries of the Paris Agreement, undertook to create favourable conditions for investment in projects to reduce greenhouse gas (GHG) emissions.
This, in turn, requires effective mechanisms for raising capital in “green” projects. This is where the issue of “green” bonds, a debt instrument whereby money from the sale of the bond is used solely to finance “green” projects. The main criterion for such projects Savchuk said is their environmental direction.
We are moving in the right direction, but we need new tools primarily financial ones to implement ” green “projects. Therefore, the issue of “green” bonds is a good example of project funding “clean” energy. In this regard SAEE is interested in working hand in hand with the Ministry of Finance, representatives of municipalities, potential investors, to create a legal and institutional green by issuing bonds in Ukraine, said Savchuk in his address.