Closing our latest webinar series about the role of green bonds in the energy transition

Hungary aims at providing an integrated vision of long-term climate and energy planning necessary to transform and decarbonise the economy. However, integrated plans require an enormous amount of funding in order to reach a transformative potential. Besides relying on national budgetary or international donors’ resources, we may turn to more innovative means of financing, including green bonds.

Green bonds can be key instruments to finance the transition towards a low-carbon economy and attract a more diversified base of investors. Investors, however, require credible policies and programmes in order to put their investments in government issued green bonds.

Furthermore, not only government agencies, but also private entities, such as mortgage banks, energy companies and real-estate investors can issue green bonds to support company-wide decarbonisation efforts, as it has already occurred in numerous cases in the European Union. Also, with the introduction of the EU Green Taxonomy requirements, investors are looking for sustainable and green investment opportunities, where green bonds can be an attractive tool.

The Western Balkans Green Center in cooperation with the Energy Community Secretariat, under the professional patronage of the National Bank of Hungary organised a webinar-series to disseminate the concept of green bonds. Speakers were from different well-known organisations, such as the central bank of Hungary, the World Bank Group member IFC, ISFC, IRENA, ,and the Hungarian Bank Holding Plc. At the webinar on sovereign-level bonds, the Hungarian Government Debt Management Agency was represented by CEO Zoltán Kurali. The webinars have touched upon topics related to green bonds, like national and municipal green programmes, just transition, sustainable buildings, energy transition and setting up an ESG institutional framework at a commercial bank.

At the closing event, Deputy Governor Csaba Kandrács of the National Bank of Hungary highlighted the pioneering role of the event of a regional scope. In addition, he underscored the importance of the green preferential capital requirements and the constant development of green financial reporting in the context of the green energy transition.

We believe initiative such as this series on the role of green bonds to energy transition are well positioned to contribute to climate protection efforts. Our speakers were seeking to further information and knowledge on the types of green bonds and loans, flagship ESG projects. A snapshot was also given on the scope of environmentally sustainable economic activities, key elements of the green mortgage bond framework, and possibilities to grow further the ‘green bonds for renewables’ market.

The presentations of our experts are avaliable here:

1. Introduction to green finance and green bonds
2. Government bonds issuance to support national green programmes  
3. Green bonds issuance on national and municipal level to support just transition
4. Green bonds supporting investments in sustainable buildings
5. Green bonds supporting investments in the energy sector
6.  Setting up an ESG (Environment, Social, Governance) strategy and including ESG-aspects in financial operations