The Luxembourg Finance Labelling Agency (LuxFLAG) launches a new label for green bonds which will be granted, after a rigorous assessment, to eligible instruments that finance green projects. The independent and international labelling agency thereby extends its activities to wider financial instruments, relying on its strong expertise in certifying sustainable investment funds in the field of Microfinance, Environment, ESG (Environmental, Social, Governance) and Climate Finance.
To enhance credibility and advance sustainable growth in the green bond market, investors need to be assured that proceeds of green bonds are investing according to their strategy and green bond principles. In turn, issuers need to communicate the attributes of their bonds efficiently to the investor community. Transparency, accuracy and trust are critical requirements for investments in the dynamic green bond market. By setting strict eligibility criteria, LuxFLAG sets the bar appropriately to provide the market with the necessary accountability and confidence for green investments in the debt capital markets.