Hungary Updates Green Bond Framework
The Government Debt Management Agency (ÁKK) has announced the publication of an updated Green Bond Framework to ensure issues are in line with best market practices and more stringent investor expectations amid a "significant transformation" on the sustainable finance market, according to a report by state news wire MTI.
The new Green Bond Framework is based on the Green Bond Principles 2021 published by the International Capital Markets Association (ICMA) while taking into consideration provisions of the European Union Taxonomy and upcoming Green Bond Standard, as well as building on the 2022 edition of the Japanese Ministry of Environment Green Bond Guidelines and the China Green Bond Principles.
Morningstar Sustainalytics was engaged to provide an independent second-party opinion on the Green Bond Framework.
Hungary's future green bond issuance will be used to finance or refinance central government expenditures in the green categories of clean transportation, land use and living natural resources, energy efficiency, renewable energy, pollution prevention and control, sustainable water and wastewater management, climate adaptation, and research, innovation, and awareness raising.
Hungary has issued HUF 1.6 trillion of green bonds on domestic and international markets since publishing its initial Green Bond Framework and issuing its first green bond in 2020.
Source: Budapest Business Journal