CRITERES ESSENTIELS POUR LE FINANCEMENT DES DETTES « VERTES »

The document argues that current green and sustainable debt instruments rely on non-binding standards and proposes a stricter framework. For green bonds and loans, it suggests requiring exclusive use for green activities (referencing the EU Taxonomy or Climate Bond Initiative) and an 'entity-level' criterion, such as excluding harmful sectors or requiring a certified 1.5°C-aligned transition plan. For Sustainability-linked bonds (SLB) and loans (SLL), it proposes mandatory prior adoption of a certified transition plan and KPIs linked to material emission reductions. Additionally, it recommends banning the use of green debt for refinancing and implementing significant financial penalties for failing to meet environmental targets.

• Green bonds and loans should meet two essential conditions: exclusive use for green activities—preferably based on the EU Taxonomy or the Climate Bond Initiative (CBI)—and an 'entity' criterion to ensure the financing does not support activities contrary to ecological transition goals, following the 'do no significant harm' (DNSH) principle.
• To prevent greenwashing, Sustainability-linked bonds (SLB) and loans (SLL) should be conditioned on the prior adoption of a certified transition plan aligned with a 1.5°C warming limit, which must prohibit new fossil fuel production or transport projects. These instruments should be based on climate objectives that result in material reductions of the issuer's emissions and environmental impact.
• BPI France's Green Bond Framework serves as an example, limiting the use of green bonds to renewable energy projects (specifically solar and wind, using the EU sustainable taxonomy threshold of 100gCO2/kwh) and excluding sectors contrary to SDG 7 and 13, such as the production, transport, and transformation of coal, oil, and gas.
• The document recommends two additional measures to ensure significant contribution to the transition: prohibiting the issuance of green debt for refinancing purposes and ensuring that failure to meet transition plans or KPIs results in dissuasive financial consequences, such as a significant increase in the interest rate.

APA

Reclaim Finance (2023). CRITERES ESSENTIELS POUR LE FINANCEMENT DES DETTES « VERTES ». https://reclaimfinance.org/site/wp-content/uploads/2023/05/2302_RF_Criteres-essentiels-pour-le-financement-des-dettes-vertes-.pdf

Chicago

Reclaim Finance. CRITERES ESSENTIELS POUR LE FINANCEMENT DES DETTES « VERTES ». 2023. https://reclaimfinance.org/site/wp-content/uploads/2023/05/2302_RF_Criteres-essentiels-pour-le-financement-des-dettes-vertes-.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=CRITERES ESSENTIELS POUR LE FINANCEMENT DES DETTES « VERTES » |date=February 2023 |url=https://reclaimfinance.org/site/wp-content/uploads/2023/05/2302_RF_Criteres-essentiels-pour-le-financement-des-dettes-vertes-.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinance2023criteres, author = {{Reclaim Finance}}, title = {{CRITERES ESSENTIELS POUR LE FINANCEMENT DES DETTES « VERTES »}}, institution = {Reclaim Finance}, year = {2023}, month = feb, url = {https://reclaimfinance.org/site/wp-content/uploads/2023/05/2302_RF_Criteres-essentiels-pour-le-financement-des-dettes-vertes-.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }