Govt. draws up framework to tap into sustainable financing tools

• Cabinet nod to seek second party opinion on draft of Green Bonds Framework into legal document 

The Government has drawn up a framework to access financing through green and blue sustainable financial instruments. 

The Cabinet of Ministers at its meeting on Monday approved seeking a second party opinion (SPO) on the draft to turn the Green Bond Framework into a document with legal force.

The proposal to this effect tabled by the President in his capacity as the Finance, Economic Stabilisation and National Policies Minister to obtain an SPO with the support of the United Nations Economic and Social Commission for Asia (UNESCAP), United Nation’s Economic and Social Commission for Asia (UNESCAP), United Nation’s Economic and Social Commission for Asia (UNESCAP) and Global Green Growth Institute (GGGI) to make the Green Bond Framework that has been drafted into a valid document was approved by the Cabinet of Ministers at its meeting on Monday.

The Government’s intention to turn into green finance was announced in Budget 2023. 

“Funds gained from such bond issues can be used for renewable energy, energy efficiency, green buildings, clean transportation, sustainable water and wastewater management, pollution prevention, governance and circular economy, adaptation to climate change, conservation of biodiversity and sustainable management of natural conservation of biodiversity and sustainable management of natural resources and land use,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said.

He said the UNESCAP, UNDP and GGGI have agreed to support the Government in establishing an internationally recognised framework for accessing finance through green and blue sustainable financial instruments.