Brussels (Brussels Morning) The European Commission supports Italy’s Sovereign Green Bonds (SGB) plan, stressing that it should help the country fulfill the goals of the Paris Agreement, according to a statement released on Thursday.
The new SGB framework will help Italy finance public expenditure in line with the Green Bonds Principles and the draft EU Green Bond Standard, the statement notes.
The European Green Deal was adopted at the end of 2019 as a set of radical policies aimed at separating economic growth from use of resources and emission of greenhouse gases.
EC helped Italy draw up the framework
The new framework is an outcome of EC assistance to the Sustainable Finance and Investments for the Transition to a Green Economy support project, which is funded by the EU.
Italy’s SGB framework is in line with the Green New Deal criteria since it will help the country select and monitor public expenses, making the economy more environmentally sustainable.
The project should help Italy identify green sectors as defined in EU’s Sustainable Finance Taxonomy and the 2030 Sustainable Development Goals. In addition, it should help the country identify investment gaps in economic sectors with respect to the goal of reaching climate-neutrality by 2050.
Once identified, these gaps will show decision-makers how much investment is needed to achieve environmental goals. They will also take account of technologies employed in key sectors and their respective contributions to overall greenhouse emissions.
The EC points out that the project offers examples of impact indicators for each green sector and that it will provide recommendations and policies to help redirect private capital towards green projects.
“The project evidences that despite the complexity, with political determination, a green European future is possible,” the EC notes, adding that “Italy is on the right path to mobilise both public and private capital and reorient them towards more sustainable investments”.