Germany issue 1st green bonds; Dutch court orders govt to slash emissions

The German government will next year issue its first so-called green bonds, borrowing on financial markets to fund projects with "a positive ecological-sustainable effect" as calls grow for climate action.

"In the second half of 2020, the German Federal Government intends to issue Green German Government securities for the first time," Berlin's Finance Agency said in a statement Thursday.

The "twin" bonds will mirror normal debt issued by the German government, with "the same maturity and coupon" (annual interest payment), the agency said.

But proceeds from the green bonds "will completely be allocated to already existing expenditures with a positive ecological-sustainable effect," it added.

The move comes as Germany has stepped up its ambitions for tackling climate change, while at the EU level negotiators this week struck a compromise deal on what spending exactly should be rubber-stamped as "green".

Lawmakers in the German parliament are voting Thursday on a "climate package" that will include a higher price for carbon dioxide (CO2) emissions in transport and construction from 2021 than originally planned by ministers.

The environmental legislation was assembled over the summer after months of public pressure including "Fridays for Future" demonstrations by school pupils.

In Brussels, negotiators this week agreed to put off for two years a decision on whether to label investments in nuclear power and natural gas as "green", clearing the way for an official classification of climate-friendly investments.

European Central Bank chief Christine Lagarde has underlined the importance of the reform, with sustainable finance deals reaching one half a trillion dollars in 2018.

EU lawmakers have in recent years pressured the ECB to target its "quantitative easing" bond-buying scheme at green debt, but many policymakers say they have a duty not to distort bond markets.

Dutch top court orders government to slash emissions
The Hague (AFP) Dec 20, 2019 - The Dutch supreme court on Friday ordered the government to slash greenhouse gases by at least 25 percent by 2020 in a landmark case brought by an environmental group.

Campaigners from the Urgenda group cheered as judges dismissed an appeal by Prime Minister Mark Rutte's government against two earlier rulings telling it to cut emissions.

"The consensus in climate science and in the international community that developed countries will have to reduce their emissions by 25 to 40 percent by 2020 is of special importance," the judgement said.

"The court of appeal has rightly decided that the Dutch state has a positive obligation under the European Convention on Human Rights to meet a reduction target of greenhouse gas emissions of at least 25 percent of 1990 levels by the end of 2020."

Urgenda brought the case in April 2015 on behalf of some 900 citizens of the Netherlands, which is particularly vulnerable to climate change as around a third of the country lies below sea level.

"History is written," Urgenda said in a tweet, describing it as a "win for the planet."

Dozens of campaigners gathered outside the court in The Hague for the ruling, which is the final decision of the Dutch judiciary on the matter.

The Dutch government appealed both a lower court's verdict backing Urgenda that same year, and an appeals court decision in the environmental group's favour in 2018.

Greenpeace described the ruling as an "immense victory for climate justice."

"The Dutch government must act now, there is no time to lose," Greenpeace campaigner Faiza Oulahsen said, calling for the closure of coal-fired power stations and reduction of animal factory farming.

"Measures now will have to be drastic and the government owes that entirely to itself, because this verdict has not been taken seriously by prime minister Rutte for four years."

In 2018 Dutch MPs unveiled ambitious new climate legislation aimed at reducing the country's greenhouse gas emissions to almost zero by 2050, while introducing an annual review to ensure targets are met.

But the government has also faced mass protests by farmers against separate legislation to cut emissions of pollution containing nitrogen.

Maritime sector floats fuel levy to help cut carbon
London (AFP) Dec 18, 2019
Major international maritime organisations proposed Wednesday a new fuel levy to help slash carbon emissions from one of the world's most polluting sectors, as they eye Paris climate change targets. Seven global shipowner associations - including Bimco, Intertanko and the World Shipping Council - announced in a statement that they want to tax commercial shipping firms $2 per tonne of fuel to raise $5.0 billion (4.5 billion euros) for a new research group to reduce their carbon usage. The Inter ... read more