The Romanian Ministry of Finance plans to launch "green" bonds on international markets in the next two years to finance energy efficiency projects and reduce pollution, Attila Gyorgy, secretary of state in the Ministry of Public Finance, said on June 21.

The money cost will be lower than ordinary sovereign bonds, but procedures should be set in place for the mandatory money allocation reports, he explained, according to Economica.net.

"There exists strong demand on foreign markets for these instruments, and there are investors who have special funds [to allocate] in this regard," he said.

A "green bond" is defined under the Green Bond Principles 2018 (GBP), which involves, among others, the publication of Green Bond Allocation and Impact reports annually until a full proceeds allocation to green projects. From the practice of other states, the implementation period of the general framework for green bonds will last about six months.

iulian@romania-insider.com

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