Brussels (The Brussels Morning Newspaper) – The European Union will help decrease the costs of issuing green bonds in poorer nations, European Commission President Ursula von der Leyen said.
The European Union will set up a Green Coupon Facility to subsidize part of the coupons for issuers that meet very high interest rates, she stated in a speech at the Association of Small Island States Leaders’ Meeting. Green bonds increase capital linked to environmentally friendly projects, though the bulk of assignments have taken place in rich countries.
“This will allow you to grow your green bond market much faster and raise the money you need for your people and your economy,” she stated. “In Europe, green bonds have proven to be an incredibly powerful tool to mobilize private investments but in developing countries, the green bond market is struggling to take off.”
Is carbon pricing the key to cutting global emissions?
President Ursula von der Leyen stated that it had been nearly 20 years since the European Union first implemented a carbon price. She noted that the initial phase had been challenging, but they now possess substantial experience regarding what works and what does not. She highlighted that emissions in the relevant sectors had been reduced by almost 50% since the inception of this policy, resulting in over EUR 200 billion in revenues generated from carbon pricing, which have been reinvested in climate action and innovation.
She emphasized the potential global impact of adopting this carbon pricing principle, envisioning reductions in emissions, growth in circular and clean economies, and additional revenues for climate initiatives. She also announced that she would be meeting with Prime Minister Justin Trudeau in New York to promote global carbon pricing and discuss its opportunities, underscoring the principle’s straightforward effectiveness: if one pollutes, they pay; if one adopts clean practices, it pays off.
