Green sustainable and other ESG-related commercial paper: ICMA paper explores the role of commercial paper in the sustainable finance market

On 7 October 2024 the International Capital Markets Association (ICMA) published a paper on the role of commercial paper (CP) in the sustainable finance market with the aim of providing transparency and promoting coherent understanding about this developing market.1 This publication sets forth preliminary guidelines and best practices for structuring and reporting sustainable CP issuances.

CP is increasingly recognised as a valuable tool in the sustainable finance market. According to ICMA’s analysis as of 1 August 2024 the sustainable CP market in the EU is estimated to have the potential to reach €300bn underscoring its growing importance in the broader sustainable finance ecosystem.

Issuers from diverse industry sectors have embraced sustainable CP including Rabobank 2 Alliander 3 Vasakronan 4 ENEL 5...