Green Bonds: How to Invest with Dowgo?

The Fight Against Climate Change Requires Massive Investments in Sustainable Infrastructure and Eco-Friendly Projects. One of the most innovative financial instruments to fund this transition is the green bond. This article explores what green bonds are, why they are essential, and how Dowgo’s tokens are issued in accordance with Green Bond standards.

What is a Green Bond?

Green bonds are financial instruments used to raise funds to finance projects with significant environmental impact. This can include renewable energy, energy efficiency, or sustainable management of natural resources.

Unlike traditional bonds, the funds raised through green bonds must be specifically allocated to environmental initiatives. Issuers—whether companies, financial institutions, or governments—must adhere to a set of rules and maintain transparency to qualify for the green bond designation.

The first green bond issuance occurred in 2007, through the "Climate Awareness Bond," initiated by the European Investment Bank (EIB). In 2017, France became the first country to issue sovereign green bonds worth 7 billion euros, over a 22-year term. This makes France the second-largest issuer of green bonds worldwide.

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Green Bond Standards

Although widely adopted, there is no single global regulation governing the issuance of green bonds. As such, various initiatives have established best practice standards, such as the Green Bond Principles (GBP), published by the International Capital Market Association (ICMA). These principles outline transparency rules to ensure that the funds raised are genuinely used to finance green projects. They include requirements for reporting on funded projects, assessing their environmental impact, and often external validation by independent third parties.

At Dowgo, we have chosen to issue our tokens according to this widely recognized green bond standard to facilitate understanding for investors. This means that, whether financing a wind farm, solar installation, or other energy efficiency initiative through Dowgo, the tokens issued meet strict and transparent criteria in line with the Green Bond Principles.

To design this legal and financial standard, Dowgo collaborates with De Gaulle Fleurance, its specialized law firm in asset tokenization and renewable energy project financing in Europe, as well as with major French banks. This alliance ensures not only the legality of the tokens issued but also their compliance with best financial practices. Institutional and individual investors can thus trust the security and transparency of projects funded through our platform.

Why Invest in Green Bonds?

Green bonds are attracting more and more investors and issuers. As part of the European recovery plan Next Generation EU (NGEU), the European Commission plans to raise 250 billion euros in green bonds by 2030. In 2024, France’s Treasury Agency issued an 8 billion dollar green bond, generating interest of nearly 100 billion dollars. Green bonds are a top choice for investors seeking both attractive returns and positive environmental impact.

For institutional investors, such as European pension funds or insurance companies, green bonds are not just an opportunity; they have become a strategic necessity. Many institutions are now required to invest in green bonds to meet their ESG (Environmental, Social, and Governance) obligations. New regulations, such as the SFDR directive, push them to allocate an increasing portion of their portfolios to green assets.

Additionally, tax incentives offered in some jurisdictions for investing in green bonds enhance the appeal of these instruments. These advantages often include tax breaks on income generated by these investments or tax relief for companies issuing or investing in green bonds.

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Investing in Green Bonds via Dowgo

Dowgo is a financing platform for renewable energy projects powered by blockchain technology. Through asset tokenization, investors can own a part of a green bond linked to wind or solar farms, allowing transparent and liquid exposure to green energy assets.

First, a token issued on Dowgo strictly adheres to green bond standards, ensuring the highest level of compliance. This guarantees that every euro invested is used for projects aligned with the stringent criteria of the Green Bond Principles, providing investors with unmatched reliability.

Secondly, even though green bonds are very popular, the lack of a clear and universal legal structure remains a barrier to the market's growth. The primary risk is financing a project that could turn out to be greenwashing. Dowgo addresses this issue by leveraging blockchain oracles, which ensures full transparency and real-time tracking of funded projects and their impacts.

Finally, one of Dowgo’s main strengths is its accessibility. Thanks to tokenization, green bonds are no longer reserved for large institutions. Now, even individual investors can participate in high-impact environmental projects. Dowgo lowers the barrier for everyone.

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Conclusion

Green bonds are now an essential way to invest in sustainable projects while achieving attractive returns. Thanks to Dowgo, these opportunities are accessible to everyone, with total transparency and high standards. Whether you are an institutional or individual investor, Dowgo allows you to contribute to the energy transition while benefiting from optimized investment conditions.