The National Bank of Georgia has released a draft regulation for public consultation on granting, maintenance, and cancellation of green, social, sustainable, or sustainability-linked bond status. The new framework aims to promote and strengthen responsible financing practices in the capital market. It introduces regulatory measures for publicly offered corporate bonds with environmental and social objectives, with a focus on enhancing investor confidence and interest in these bonds. Additionally, it aims to prevent and eliminate misleading advertising practices, known as greenwashing.

The regulation is aligned with the International Capital Markets Association (ICMA) principles and international best practices in sustainable finance. It also reflects the European Green Bond Standard Regulation approved by the European Parliament and Council on November 22, 2023. To qualify and maintain the appropriate status, bonds will need the review provided by an expert. Notably, the status of "green," "social," including "gender," or "sustainable" will only be granted to publicly offered corporate bonds where funds raised will finance economic activities defined by the NBG’s sustainable finance taxonomy or an equivalent international taxonomy.

The draft was developed in collaboration with international institutions such as the World Bank, International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the Sustainable Banking and Finance Network.

Interested parties are invited/encouraged to submit comments on the draft regulation to the National Bank of Georgia before March 31, 2024.