Why Following the Green Bond Principles Matters
The ICMA Green Bond Principles (GBP), most recently updated in June 2025, are the most widely used market standard for green bonds. They are built on four core components:
- Use of Proceeds – proceeds go to clearly defined eligible green projects with measurable environmental benefits.
- Process for Project Evaluation and Selection – the issuer explains how projects are chosen and how environmental and social risks are managed.
- Management of Proceeds – net proceeds are tracked and allocated in a transparent way.
- Reporting – regular reporting on how the proceeds were allocated and on the environmental impact achieved.
The EU Green Bond Standard (EuGBS) Since 21 December 2024, the European Green Bonds Regulation (EU) 2023/2631 allows issuers to use the voluntary “European Green Bond” (EuGB) designation. It sets a higher bar: proceeds must be allocated to EU Taxonomy-aligned activities (with a limited flexibility pocket of up to 15%), issuers publish a pre-issuance factsheet and allocation reports reviewed by an external reviewer registered with ESMA, and an impact report is required. For buildings, Taxonomy alignment depends on specific technical criteria such as energy performance and climate risk, which is exactly where real estate expertise makes the difference.
The Green Bond Issuance Journey
DCarbon supports you from the first portfolio screening to your annual reporting:
- Step 1: Portfolio Assessment & Use of Proceeds Definition – We screen your portfolio and pipeline against eligibility criteria (green building certifications, energy performance, EU Taxonomy technical screening criteria) and define the eligible green project categories.
- Step 2: Framework Drafting & Strategy Alignment – We draft your Green Bond Framework around the four core components and align it with your sustainability strategy, decarbonization targets and existing ESG reporting (GRESB, EPRA sBPR, CSRD). We also help you decide between the ICMA route and the EU Green Bond Standard.
- Step 3: Second Party Opinion (SPO) Facilitation – We prepare the evidence package, coordinate with the independent SPO provider or external reviewer and support you through their review.
- Step 4: Post-Issuance Reporting Setup – We set up the allocation and impact reporting methodology, KPIs (e.g. energy intensity, GHG emissions, certified floor area) and data collection processes, so annual reporting runs smoothly.
Why Choose DCarbon for Your Green Investment Bond?
- Real estate specialists – We work on buildings every day, so your use of proceeds is grounded in real asset-level performance, not generic criteria.
- Certification expertise – As a LEED Proven Provider, we know green building certifications (LEED, BREEAM, WELL) inside out.
- In-house technical depth – Energy modelling, life cycle analysis, carbon tracking and climate risk assessment under one roof, which supports EU Taxonomy alignment.
- One data set, many reports – We connect your green bond reporting with GRESB, EPRA and CSRD/ESRS, so you don’t collect the same data twice.
- Local market knowledge – Hands-on experience across the Greek real estate market
Frequently Asked Questions
What is a Green Bond Framework?
A Green Bond Framework is the document that tells investors exactly how the capital raised through a green bond will be used, and how the issuer will prove it. It defines which assets and projects are eligible, how they are selected, how the proceeds are tracked and how allocation and environmental impact will be reported. A credible framework follows recognized green bond guidelines and is reviewed by an independent external reviewer before issuance. For real estate issuers, eligible assets typically include certified green buildings, buildings that meet the EU Taxonomy criteria, energy renovations and on-site renewable energy.
What are the main green bond guidelines in Europe?
The two main references are the ICMA Green Bond Principles, the voluntary global market standard, and the EU Green Bond Standard, which created the voluntary “European Green Bond” label based on the EU Taxonomy. Many European issuers follow the GBP and report on Taxonomy alignment.
Do I need a Second Party Opinion (SPO) for my green bond?
Under the Green Bond Principles, an external review is recommended rather than mandatory, but in practice most investors expect one. For a European Green Bond, review by an ESMA-registered external reviewer is mandatory.
How does a green investment bond differ from a regular corporate bond?
Financially, it works like any other bond. The difference is that the proceeds are earmarked for eligible green projects and the issuer commits to transparent reporting on allocation and environmental impact.
Can existing buildings be financed through a green bond?
Yes. Green bonds can finance or refinance existing buildings, acquisitions and renovations, provided they meet the eligibility criteria in your framework, for example green building certification or EU Taxonomy criteria for buildings.
What does post-issuance reporting involve?
Issuers typically report annually on how the proceeds have been allocated until full allocation, along with the environmental impact of the financed assets.
Secure Your Green Investment Bond Framework with DCarbon
Contact us today to develop a Green Bond Framework that drives real environmental impact and secures investor trust.