90 NEWSLETTER 2021 The proceeds of the issued bonds are transferred to a special account and used within the framework of the World Bank’s liquidity policies until they are used for the relevant green project. Monitoring and reporting activities are ensured by the reports to be received from the government institutions proficient in the relevant sector. The development and impacts of the project are supervised by the relevant government institution and the World Bank. Green Bond Principles (GBP) The GBP5, which were most recently renewed in June 2021, aim to ensure the transparency and accuracy of the information conveyed to the investors by the bond issuers. Four fundamental components are listed in the GBP: • Use of Proceeds: According to the GBP, the projects in which the proceeds of the bond will be used shall be stated clearly and in detail. “Green projects” that will benefit the environment shall be preferred. The green project shall support one of the following issues: Climate change mitigation Climate change adaptation Natural resource conservation Biodiversity conservation Pollutions prevention and control Although some green project categories are mentioned in the guidelines, these categories are not exhaustive. These categories are renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, terrestrial and aquatic biodiversity, clean (public) transportation, sustainable water and wastewater management, climate change adaptation, circular economy adapted products, and green buildings. 5 https://www.icmagroup.org/assets/documents/Sustainable-finance/2021-updates/ Green-Bond-Principles-June-2021-140621.pdf (Access date: 23.01.2022).
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