In 2007, the EIB issued its inaugural Climate Awareness Bond (CAB), the world‘s first green bond.
CABs provide clarity and accountability through their dedicated use-of-proceeds. The EIB allocates the funds exclusively to CAB-eligible loan disbursements and reports on both allocated projects and climate impact. In this way, CABs introduced the notion that it is possible to report on actual investments by sustainability objective, linking finance closer with the real economy.
The recently published evaluation on CABs concludes that EIB has played a foundational role in establishing green bonds as a legitimate asset class via the scale and regularity of CAB issuance and that EIB pioneered the development of market governance and standards.
CABs are aligned with ICMA‘s Green Bond Principles.
More details on CAB-related procedures, responsibilities, processes, including allocation and impact reports can be found in the latest audited CAB Framework.
In the spotlight
- EIB Workshop: EU Taxonomy and EUGBS as business opportunity
- #AskMeAnything: Climate finance explained
- Green bonds to help finance climate action
- Leveraging green investment
- Is sustainability a good investment?
- 10 years of green bonds
- The need for a common language in green finance
- What is a Green Bond?