Italy

Framework for the Issuance of Italian Sovereign Green Bonds

The Ministry of Economy and Finance (MEF) has published the Framework for the issuance of BTPs Green (the Green Bond Framework), in line with the provisions of the Budget Law no.160 of December 27th, 2019.


The aim of this document is to illustrate the environmental strategy of the Republic of Italy as well as the core mechanisms of each BTP Green issuance: the eligibility criteria for the expenditures included in the Italian State budget and classified as eligible, the use of proceeds of each issuance, the monitoring and the environmental impact of these expenditures.

In drafting the Green Bond Framework, the Treasury has received technical support through the project “Sustainable Finance and Investments for the Transition to a Green Economy” funded by the European Union via the Structural Reform Support Programme and implemented by the consultancy company ICF S.A. in association with the Climate Bonds Initiative, Grimaldi Studio Legale & Cambridge Econometrics, in cooperation with the European Commission’s Directorate General for Structural Reform Support (DG REFORM).

“The Republic of Italy recognizes the vital environmental, economic and societal benefits that these assets generate and is therefore fully committed to the protection of the environment and the fight against climate change, both nationally and globally. To this end, the Republic of Italy has fully endorsed and is committed to the European Commission’s framework for achieving climate neutrality by 20501 and the goals set out in the European Green Deal”

Green-Bond-FrameWork

Moreover, the Framework’s contents have been refined through a comprehensive data and information assessment within the Interministerial Committee for Green Government bonds set up pursuant the above-mentioned Budget Law.

Finally, in the structuring process of the Framework for Sovereign Green Bonds, the Treasury has been supported by two banks chosen among the Specialists in Government bonds as structuring advisors: Crédit Agricole Corp. Inv. Bank and Intesa Sanpaolo S.p.A.

Together with the Green Bond Framework, the Second Party Opinion of the Framework received by the Republic of Italy from Vigeo Eiris, an independent review body selected by the Treasury for this purpose, is now also published.

This Opinion is an ex ante validation of the consistency with the environmental objectives and the overall sustainability strategy of the Republic of Italy of the approach used in the Green Bond Framework: this approach concerns the allocation process of the proceeds from the bond issuances, the quantification of climate and environmental benefits, as well as the compliance of the eligible expenditures with ICMA’s Green Bond Principles and the draft EU Green Bond Standards, currently under development by the European Commission.

The MEF publishes the Framework for the issuance of Sovereign Green Bonds (BTP Green)

The Ministry of Economy and Finance (MEF) has published the Framework for the issuance of BTPs Green (the Green Bond Framework), in line with the provisions of the Budget Law no.160 of December 27th, 2019.

The aim of this document is to illustrate the environmental strategy of the Republic of Italy as well as the core mechanisms of each BTP Green issuance: the eligibility criteria for the expenditures included in the Italian State budget and classified as eligible, the use of proceeds of each issuance, the monitoring and the environmental impact of these expenditures.

In drafting the Green Bond Framework, the Treasury has received technical support through the project “Sustainable Finance and Investments for the Transition to a Green Economy” funded by the European Union via the Structural Reform Support Programme and implemented by the consultancy company ICF S.A. in association with the Climate Bonds Initiative, Grimaldi Studio Legale & Cambridge Econometrics, in cooperation with the European Commission’s Directorate General for Structural Reform Support (DG REFORM).

“The Republic of Italy recognizes the vital environmental, economic and societal benefits that these assets generate and is therefore fully committed to the protection of the environment and the fight against climate change, both nationally and globally. To this end, the Republic of Italy has fully endorsed and is committed to the European Commission’s framework for achieving climate neutrality by 20501 and the goals set out in the European Green Deal”

Green-Bond-FrameWork

Moreover, the Framework’s contents have been refined through a comprehensive data and information assessment within the Interministerial Committee for Green Government bonds set up pursuant the above-mentioned Budget Law.

Finally, in the structuring process of the Framework for Sovereign Green Bonds, the Treasury has been supported by two banks chosen among the Specialists in Government bonds as structuring advisors: Crédit Agricole Corp. Inv. Bank and Intesa Sanpaolo S.p.A.

Together with the Green Bond Framework, the Second Party Opinion of the Framework received by the Republic of Italy from Vigeo Eiris, an independent review body selected by the Treasury for this purpose, is now also published.

This Opinion is an ex ante validation of the consistency with the environmental objectives and the overall sustainability strategy of the Republic of Italy of the approach used in the Green Bond Framework: this approach concerns the allocation process of the proceeds from the bond issuances, the quantification of climate and environmental benefits, as well as the compliance of the eligible expenditures with ICMA’s Green Bond Principles and the draft EU Green Bond Standards, currently under development by the European Commission.

The Framework for the issuance of Sovereign Green Bonds is available here

The SECOND PARTY OPINION on the sustainability of the Republic of Italy’s Green Bond Framework is available here

Source: Ministero dell’Economia e delle Finanze Via XX Settembre, 97 – 00187 Roma

Post Author: Wealth Monaco