The parliament of Luxembourg unanimously approved the world’s first green covered bond law yesterday (Tuesday), “a first point of reference” for the developing market.
The Luxembourg ministry of finance announced in January that it had produced a draft law to create a framework for green covered bonds backed by renewable energy assets.
The law, which amended a 1993 law on the financial sector, was approved by the Luxembourg parliament yesterday with 56 votes in favour and none against.
The law is the first green covered bond law to be proposed anywhere in the world. The Luxembourg ministry of finance said it represented a first point of reference for a market that had been lacking a clear definition of what it means for a project to be “green”.
Photo: Luxembourg Ministry of Finance; Source: Wikimedia Commons