Targets and Framework
With the issuance of green Federal securities and the associated reporting, the Federal Republic of Germany has been creating a high level of transparency about the allocated green expenditures in the Federal budget since 2020.
In addition to interest cost savings, the Federal government and Finance Agency are pursuing the goal of significantly strengthening and developing the market for green and sustainable forms of investment.
In analogy to the conventional Bund curve, a green yield curve for the euro area is to be established in the future: With maturity focuses of 2, 5, 10 and 30 years, the Federal government also intends to set the interest rate reference for the green euro financial market. Market participants with a wide range of investment horizons are offered a green and transparent investment alternative with first-class creditworthiness.