Capital markets can supply significant green funding needed. Putting in place necessary regulatory frameworks and clear incentives can encourage new issuers and investors to come to the market.
Despite being slow to tap into capital markets, there are signs that green bonds are becoming an asset class in its own right and have begun gaining traction in the Eastern Partnership region. To grow the green bond market further, these countries need more demonstration issuances, particularly by the sovereign but also by municipalities. These can serve as examples for other market actors to follow as well as reassure investors. Central Banks and financial regulators have a particularly important role to play in this context. The EU and partner international players are ready to help these countries to accelerate the uptake of green bonds.
The panel aimed to present progress so far in using green bonds to mobilise capital finance for green investments and identify key elements of a roadmap for accelerating the use of such instruments, taking into account EU experience and national regulations.