Extended Green-Bond-Portfolio from KfW

Since 2015, KfW has not only been an issuer of green bonds for financing the climate and environmental protection but also actively participated in building up its own green bond portfolio. In May 2017, with support from Germany’s Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, the target volume was doubled from EUR 1 billion to EUR 2 billion. Green bonds can be purchased e.g. for renewable energy sources, resource efficiency, environmental friendly transportation, pollution prevention and control, and sustainable water and wastewater management.

The minimum criteria for the purchase of green bonds specified by KfW include:

• a clear project definition, including statement of objectives and the expected environmental impact;
  
• an informed project selection and a transparent process of using the earmarked funds;
  
• regular and publicly accessible reporting about the type and scope of projects, outflow of funds and the environmental impact (quantified if possible); and
  
• verification of the selection of projects / use of funds by a qualified independent third party.