CMS Germany. "Sustainable Finance". CMS. (1593043200)June 25, 2020. https://cms.law/...

"Green loans" are used to finance green projects, whereas "sustainability linked loans" are linked to the borrower's sustainability performance.  In the European Union in recent years, there has been rapid growth in green financial products only for use to fund green sustainable projects.  Unlike green loans, the use of sustainability linked loans is not restricted to green purposes.  While there is currently no sector-wide uniform understanding of sustainable investments, the EU is now adopting a legislative package for sustainable investment in which the term "sustainability" will be harmonized.

Posted on 24/03/21

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