The Wuppertal Institute evaluates the state's green bonds on behalf of the Ministry of Finance of Baden-Württemberg. The scientists examine non-compulsory sustainable projects in the state budget that are used for re-financing on the financial market. The annually issued bond includes measures in the areas of climate change mitigation and adaptation, avoidance of pollutants, circular economy, protection of water resources and preservation of biodiversity. Thus, the bond is oriented towards the framework of the EU taxonomy and the environmental goals of the European Union.
The researchers assess the risk of significant harm to these objectives (Do-No-Significant-Harm). They also identify, qualify and quantify (where possible) appropriate impact indicators. They summarise the results in annually published reports.
The scientists apply a theory-of-change by connecting the interventions of the state of Baden-Württemberg to the desired contributions to higher-level goals. In doing so, they also take into account outcomes that have an impact beyond the project boundaries at the societal level. Over the course of the four-year project, they are constantly expanding their database and methodology.