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Green Bond Program

The Australian Government has committed to introducing a green bond program. The program will enable investors to back public projects that drive Australia’s transition to net zero by 2050 and support environmental objectives.

Sovereign green bonds will boost the scale and credibility of Australia’s green finance market and attract more green capital to Australia by increasing transparency around climate outcomes and the volume of green investments available.

The Australian Office of Financial Management will issue green bonds on behalf of the Australian Government.

The first issue of green bonds is expected to occur in mid-2024.

Green Bond Framework

The Green Bond Framework sets out the Australian Government’s key climate change and environmental priorities and outlines how green bonds will be used to finance eligible green expenditures. This includes the basis for identifying, selecting, managing, and reporting on expenditures financed with green bonds.

The Framework is aligned to the International Capital Market Association (ICMA) Green Bond Principles 2021.

Sustainalytics, an independent sustainability expert, has provided a Second-Party Opinion on the Framework’s environmental credentials and confirmed that it is credible and impactful and aligns with the four core components of the Green Bond Principles 2021.

Allocation and impact reporting

The Australian Government is committed to providing investors with regular and transparent allocation and impact reporting. Allocation Reporting will detail the allocation of green bond proceeds towards eligible green expenditures. Impact Reporting will detail the environmental impact of those expenditures.

Annual allocation and impact reporting will commence no more than 18 months after the first green bond issue and will be published on the AOFM website.

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