Service Description

Green Loan Principles The Green Loan Principles (GLPs) are a set of voluntary guidelines issued by the Loan Market Association to aid the development of a market-standard approach to green lending. On 23 February 2023, a joint working group comprising of the Loan Market Association, the Loan Syndications and Trading Association and the Asia Pacific Loan Market Association published updated principles and guidelines on the Green Loan Principles (the "GLPs"), which were last updated in February 2021.  The GLPs aim to promote the development of the green loan product by providing a recommended framework of market standards and guidelines whilst allowing the loan product to retain flexibility. 1.1 Green loans are defined by the GLPs as any type of loan instruments and/or contingent facilities made available exclusively to finance, re-finance or guarantee, in whole or in part, new and/or existing eligible green projects. To this extent, the GLPs recognise non-exhaustive categories of eligibility for green projects such as: climate change mitigation and adaptation, natural resource conservation, pollution prevention and control, renewable energy, clean transportation and green buildings. 1.2 The GLPs provide a framework to assist in the understanding and application of green loans based on four core components: Use of proceeds; Process for project evaluation and selection; Management of proceeds; Reporting. Who reports? The GLPs can be applied by any market participants, with the guidelines supporting the integrity of the green loan market by clarifying when and how a loan can be categorised as "green" What is reported? The GLPs require specific methodologies to be applied to a green Joan Similarly to the Green Bond Principles, the GLPs are based around four components: Use of proceeds Process for Project for Project Evaluation and Selection Management of Proceeds Reporting Benefits Provides clanty on the instance at which a loan can be classified an "green" Promotes the financing of sustainable activities and projects. Improves the transparency of the use of proceeds