BERLIN (AP) - The German government plans to generate up to 11 billion euros ($13 billion) for clean transportation and renewable energy projects this year by issuing so-called green bond, officials said Monday.
The step is part of an effort to meet demand for environmentally friendly investments and follows the path already taken by other countries, including neighboring France. Each green bond will mirror a regular debt issuance by the German government, known as “bunds,” which are considered safe havens for investors.
Germany’s deputy finance minister, Joerg Kukies, said the first green bonds worth 4 billion euros will be issued next month, with the rest released in the fourth quarter.
The government has identified spending of over 12.7 billion euros that would meet the criteria of green investment, Kukies said.
Germany’s state-owned KfW bank and several municipalities have already issued their own green bonds.
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