Prague Workshop on Green Bonds
10 / 10 / 2022
The International Sustainable Finance Centre (ISFC) held a closed-door workshop on September 22 bringing together private and public sector professionals to discuss green and sustainability bond topics. How can green finance instruments help reach climate commitments? And most importantly, how can the Czech industries leverage green and sustainability-linked bonds for decarbonisation?
The workshop facilitated a peer to peer learning focusing on identifying key financial levers. The Czech Republic is currently at a crossroads. There is no denying that the industrial sector contributes about 30% to the domestic value created at a hefty emission cost stemming from the energy need and processes used most notably in steel, cement, and chemical production. To avoid a disorderly transition we need to plan for an effective climate finance architecture. Unlocking funding for decarbonisation projects is important as uncertainties around the emission trading policies and the current supply shock could easily derail the green industry agenda.
Green and sustainability-linked bonds present an unprecedented opportunity. Head of Industry Decarbonisation at ISFC, Karel Voldřich, who is leading the research on Czech industrial sectors, argued that “Czech industrial players could tap into the green bond market for capital investment. The market momentum is there as green bonds attract a lot of attention and the demand outstripping the supply.”
When commenting on the available issuer guidances such as the EU Sustainable Finance Taxonomy he added: “When companies have no eligible green assets and projects, sustainability-linked bonds offer attractive alternative funding. Investors are increasingly looking for products that contribute to not just one environmental or social goal but deliver on multiple at the same time. And companies can directly benefit from the market’s recognition of their commitment to emission reductions and resilience building. “
The Industry Taskforce
The Taskforce will pool key decision makers and power brokers from the region to provide expert input, peer review for research and act as ambassadors of the project.