?ód? will issue green bonds as the first big Polish city!

European Union wants to reduce greenhouse gas emissions by 40% by 2030. Such ambitious goals will require significant investment in housing and industrial infrastructure as well as low carbon technologies. A large part of them will have to be borne by local government units, which are struggling with increasing budget constraints. According to DNB Bank Polska experts, the solution may be green bonds, i.e. securities used to finance investments that protect the environment. The report "Why is it worth to issue and invest in green bonds?" prepared by DNB Bank Polska and KPMG shows that in the coming years the green bond market has a chance for very rapid development.

Many local governments are alarming that in connection with the reduction of PIT incomes and growing current expenses, they will have to limit their expenditures. - Meanwhile, the needs of the inhabitants are not decreasing. Our task as local government officials is to provide them with a better and better standard of living. The problem is where to get the money for it - said Hanna Zdanowska, Mayor of ?ód?.

Thanks to green bonds, Polish cities could accelerate, consolidate, and better coordinate their activities to improve the quality of the environment and counteract such important problems as smog or limited access to water.

One of the possible tools to be used by local government units is green bonds. The main factor that distinguishes them from traditional bonds is the "greenness" of the issue target. Its implementation is to have a positive impact on the natural environment, e.g. to increase the production of energy from renewable sources or reduce the emission of pollutants. They can finance various types of goals, for example, installations using renewable energy sources, public transport, sustainable management of water resources and sewage, green construction or the protection of biodiversity.

source: https://www.prawo.pl/samorzad/zielone-obligacje-szansa-samorzadow-na-finansowanie-inwestycji,480663.html