MVM Develops Green Financing Framework

The Hungarian MVM Group has developed a green financing framework to finance its investments to achieve national and corporate sustainability goals, the company told MTI on Tuesday.

According to the information, the framework opens the possibility for the energy group MVM to finance these investments by issuing green bonds or taking out green loans. The framework was developed with the support of BNP Paribas.

The statement recalled that in the 2015 Paris Climate Agreement, the European Union committed to a 45% reduction in carbon emissions by 2030 and net zero emissions by 2050. The energy sector is responsible for a significant share of greenhouse gas emissions, so replacing fossil fuels with environmentally friendly renewable energy sources is a priority.

MVM has developed a decarbonization strategy to replace coal-based generation with new, modern, green, low-emission generation assets as soon as possible. The strategy foresees the company becoming carbon neutral by 2050.

In order to implement the strategy, MVM has approved a green investment framework of EUR 1.5 billion, largely for the development of the electricity grid and renewable capacity and to a lesser extent for the development of e-mobility and energy efficiency, the statement said.