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This paper proposes green project bonds as an alternative way to finance “green” PPPs by engaging capital markets.

For procurers to effectively include green bonds in their current tendering activities, they need to understand both the opportunities and underlying risks stemming from the inclusion of this type of securities as a financing tool. In order to prompt higher investments into green projects, public procurers will have to implement a series of changes in their current practices that will guarantee fair competition and lower costs.