Slovenia to Link Debt Costs to Climate Goals in First for Europe

Slovenia moved a step closer to linking some of its borrowing costs to the achievement of climate goals, which would be the first ever by a nation in the European Union.

The government led by Premier Robert Golob approved the framework for a so-called sustainability-linked bond on Thursday, which will tie the interest rate the state pays to whether it meets pre-determined environmental, social or governance (ESG) targets. So far, only a few countries such as Chile and Uruguay have issued such sovereign debt.