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• Germany mandates DZ BANK AG and Deutsche Bank to update its Green Bond Framework, slated for completion in 2025, reinforcing its commitment to sustainable finance.
• Since 2020, Germany has issued over €73 billion in Green Bonds, making it a leading global issuer with a strong environmental impact through the Federal budget.
• Germany’s “Twin Bonds” concept, offering both green and conventional bonds, has garnered high demand among both domestic and international investors.

The Federal Republic of Germany has appointed DZ BANK AG and Deutsche Bank as joint ESG coordinators for a planned update to its Green Bond Framework, scheduled for publication in 2025. This mandate aligns with Germany’s growing role in sustainable finance, having issued Green Federal Securities valued at over €73 billion since its first green issuance in August 2020.

The framework underpins Germany’s issuance of Green Federal Securities, where proceeds are allocated to Federal budget expenditures with an environmental focus. Since its inception, the framework and Germany’s “Twin Bonds” model—offering both green and conventional bond options—have gained traction among investors globally.

Industry Leaders Weigh In

Kai Poerschke, Senior VP SSA Origination, noted,

“The Twin Bonds concept with its Green Bond respectively conventional twin has already found great demand from all groups of national and international investors. The quality of the Green Bond framework, the extremely strong ratings of the issuer and the outstanding liquidity of the bonds are strong arguments which convince market participants.”

David Marques Pereira, Senior ESG Originator, added,

“By updating the Green Securities issuance programme, the Federal Republic of Germany is once again underlining its strong commitment to Sustainable Finance and its role as a promoter of the market for green financial products.”

Strengthening Germany’s Sustainable Finance Strategy

As part of the German Sustainable Finance Strategy, Green Federal Securities support Germany’s position as a sustainable finance hub.

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Marcus Pratsch, Head of Sustainable Bonds and Finance at DZ BANK, commented,

“The issuance of Green Federal Securities is an important part of the German Sustainable Finance Strategy and thus of Germany’s position as an international sustainable finance centre. We are pleased about the trust placed in us and the opportunity to support Germany as a leading financial centre in the important area of sustainability.”

DZ BANK’s history of supporting major German institutions, including KfW, NRW.BANK, and Rentenbank, underscores its role in structuring and advising on green and social bond frameworks—a legacy it now continues with the German government’s Green Bond Framework.

Germany’s commitment to sustainable finance continues to shape its financial markets, with this planned update to the Green Bond Framework expected to further drive both national and international sustainable investment opportunities.