Climate Change Tag

What Is Sustainability-Linked Loans (SLLs)? Sustainability-Linked Loans (SLLs) are a form of financing where the borrower’s cost of capital is tied to their achievement of predefined Sustainability Performance Targets (SPTs). Unlike green or social loans whose use of proceeds must be earmarked for eligible projects, SLLs can be used for general corporate purposes, provided the...

The Green Loan Principles (GLPs) are a set of voluntary and recommended guidelines that establish a framework for loan instruments exclusively designated to finance or re-finance “Green Projects.” GLPs’ defining legal characteristic is the strict application of its proceeds for environmentally beneficial purposes. The GLPs are structured around four core components, which serve as...

Carbon trading involves a market-based system designed to reduce the greenhouse gas emissions that contribute to global warming, especially carbon dioxide, by creating a financial incentive to do so. One may wonder how does this market work? Where does carbon offsetting fit into the picture? Transactions involve buying and selling carbon credits permits between countries, which allows the...