Framework categories
The issuer’s own eligible categories, as the GBP expect.
The UK sovereign framework uses seven, including nuclear from 27 November 2025.Software · green bonds and loans, cited
Green finance software: use of proceeds, allocation and impact
Green finance software keeps the record behind a green bond or green loan: which projects qualify, where the money went, and what it achieved.
The rules here are mostly voluntary market principles, so the record is what gives a green label its credibility.
What the software does
What does green finance software track? Four components, one ledger
Green finance software tracks money with a promise attached: that it was spent on eligible green projects.
ICMA’s Green Bond Principles organise that promise into four core components, and the Green Loan Principles use the same four.
Platforms built for this do careful, valuable work: they turn a spreadsheet of projects and drawdowns into a ledger an investor or lender can trust.
The regulated disclosures of an asset manager or bank are a different job, set out on sustainable finance software.
- 1
Use of proceeds
Eligible green projects, financing or refinancing, look-back period.
- 2
Selection
How each project was judged to fit an eligible category, and its risks.
- 3
Management
Net proceeds tracked in a sub-account or portfolio; unallocated balance shown.
- 4
Reporting
Annual allocation and impact, until full allocation.
The market principles
Are the green bond and loan principles binding? No, and they say so
ICMA calls the Green Bond Principles “voluntary process guidelines”, and their disclaimer says they “do not create any rights in, or liability to, any person”.
The Green Loan Principles differ in two ways a system must handle: reporting may go only to the lenders, and a borrower with the expertise may self-certify.
Neither text is law, which is why the evidence trail inside the software carries so much weight.
An FCA-authorised firm describing a product as green is also under the anti-greenwashing rule, ESG 4.3.1R.
Bonds and loansExplore
Law, voluntary or abandoned
Which green finance rules bind you? Only the label you choose
Most of green finance runs on voluntary principles; law enters when an issuer chooses a regulated designation or makes a claim.
The EU’s Regulation (EU) 2023/2631 binds only bonds that use the “European Green Bond” or “EuGB” designation, and “has applied since 21 December 2024”, per the EUR-Lex summary.
There is no UK green taxonomy: HM Treasury concluded on 15 July 2025 that work “should therefore not proceed”, in its consultation response.
The checker beside this sorts each instrument by what it is today.
Green finance rules · pick who you are
2 binding now · 0 made but applying later · 0 proposed only · 1 voluntary · 1 abandoned
| Instrument | Status | Source |
|---|---|---|
| EU Taxonomy alignment of proceeds Binding now | The EuGB Regulation is built on the Taxonomy; outside EuGB, alignment is a disclosure an issuer may choose. | Reg (EU) 2020/852 |
| DMCC Act 2024, misleading practices Binding now | Applies to green claims made to consumers. | DMCC Act Part 4 |
| ICMA Green Bond Principles Voluntary | Voluntary process guidelines, June 2025 edition; four core components. | ICMA GBP 2025 |
| UK green taxonomy Abandoned | HM Treasury decided on 15 July 2025 that work “should therefore not proceed”. | HMT response |
Each status is dated to the instrument linked beside it; a proposal is never shown as law.
Nothing is stored or sent.
Taxonomies
Which taxonomy should proceeds map to? The EU’s, or a framework’s own categories
Under the GBP, an issuer defines its own eligible categories in a framework and may say how they align with “official or market-based taxonomies”.
The EU Taxonomy’s four conditions are in Article 3 of Regulation (EU) 2020/852, and the EuGB Regulation is designed to aid its application in the bond market, in recital (7) of Regulation (EU) 2023/2631.
A UK issuer has no UK taxonomy to map to, so software should hold the framework categories and, optionally, an EU Taxonomy mapping.
The EU classification itself is covered on EU Taxonomy software.
Eligible
projects
projects
EU Taxonomy
The four conditions of Article 3, where an issuer uses EuGB or chooses to disclose alignment.
Regulation (EU) 2020/852.A worked example
What does a full year of green reporting look like? The UK’s own green gilts
Raised FY 2024–25
£10.1bnGreen gilts plus Green Savings BondsAllocated
£11.1bnIncluding £1.0bn carried forwardEligible spend reported
£14.1bnRemaining £3.0bn for the next roundCategories
SevenNuclear added 27 November 2025HM Treasury published its fourth allocation report and second impact report on 15 October 2026, under its Green Financing Framework 2025.
It shows the shape of the job: money raised, eligible spending matched to it, an unallocated balance carried forward, and limited assurance over the allocation figure, per the report.
Its impact figures are labelled indicative, and it warns that its jobs estimate should not be attributed to the programme alone, which is the caution any impact report should carry.
UK green gilts, FY 2024–25Explore
UK green gilts, FY 2024–25
Raised
£10.0bn of green gilts and £80m of retail Green Savings Bonds.
UK green gilts, FY 2024–25
Available and allocated
£11.1bn, fully allocated to eligible expenditure.
UK green gilts, FY 2024–25
Eligible spend reported
£14.1bn; the rest carried to the next round.
UK green gilts, FY 2024–25
Assurance
Limited assurance by Grant Thornton under ISAE 3000 (Revised).
UK green gilts, FY 2024–25
Framework
In force 27 November 2025; aligned with the June 2025 GBP.
The tests before you sign
Eight questions for any green finance platform, each tied to its source
Each question names the principle it comes from and what a passing answer looks like.
Run them on one real framework and one real drawdown schedule.
This site has tested no products
Nothing on this page is a rating, ranking or recommendation of any product.
Green finance demo questions · tick the ones you need
The pass tests are our reading of the cited provisions.
Nothing you tick is stored or sent.
Claims
When does a green label become a legal risk? When it misleads
Law reaches green finance through claims: what a firm or issuer says about a product has to be true and supportable.
For FCA-authorised firms that is ESG 4.3.1R; for claims to consumers it is the DMCC Act 2024.
The allocation and impact record is the evidence for both.
Where law reaches green financeExplore
Where law reaches green finance
FCA firms
Sustainability references consistent with the product, from 31 May 2024.
Where law reaches green finance
EuGB
The Regulation’s requirements, if the designation is used.
Where law reaches green finance
Listed issuers
Targets and transition disclosures under UK SRS S2, comply or explain from 2027.
For the board
A green bond is a promise about where money went, and the ledger is the proof.
The principles are voluntary; the claim is not.
Takeaways
Green finance software, in five facts
| Fact | What it means for the software |
|---|---|
| The GBP and GLP are voluntary | The evidence trail is what makes the label credible. |
| Reporting is annual until full allocation | Keep the ledger live until every pound is allocated. |
| Green loan reports may go to lenders only | Support a private and a public view. |
| EuGB is optional | Apply its requirements only to designated bonds. |
| There is no UK green taxonomy | Map to framework categories and, optionally, the EU Taxonomy. |
- 21 Dec 202401
- 26 Mar 202502
- Jun 202503
- 15 Jul 202504
- 15 Oct 202605
Next: if proceeds must show EU Taxonomy alignment, see EU Taxonomy software.
Frequently asked
Green finance software, answered
What is green finance software?
Software for issuers of green bonds and borrowers of green loans that keeps the use-of-proceeds record: the eligible projects, the proceeds ledger, allocations, and the annual allocation and impact reports investors and lenders expect.
Are the Green Bond Principles law?
No. ICMA describes them as “voluntary process guidelines”, and their disclaimer says they “do not create any rights in, or liability to, any person”.
The current edition is June 2025.
What are the four core components?
Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds, and Reporting.
The Green Loan Principles use the same four.
How often must a green bond report?
The GBP recommend that information on the use of proceeds be “renewed annually until full allocation”, and on a timely basis in case of material developments.
Must green loan reports be public?
No. The Green Loan Principles say information “need only be provided to those institutions participating in the loan”, though borrowers should make it public where feasible.
Is the EU Green Bond Standard mandatory?
No. Regulation (EU) 2023/2631 has applied since 21 December 2024 to bonds that use the “European Green Bond” or “EuGB” designation.
Issuers can still issue green bonds under market principles without it.
Is there a UK green taxonomy?
No. HM Treasury decided on 15 July 2025 that work on a UK taxonomy “should therefore not proceed”.
Software that maps proceeds to a UK taxonomy is mapping to something that does not exist.
How does the UK government report its green gilts?
Under its Green Financing Framework, updated in force on 27 November 2025 to add nuclear as a seventh category and move impact reporting to annual.
Its October 2026 report covers £10.1bn raised in FY 2024–25 and carries limited assurance.
Does the FCA regulate green bonds?
Not as a category.
The anti-greenwashing rule, ESG 4.3.1R, applies to FCA-authorised firms’ sustainability references, and consumer law applies to claims made to consumers.
Do green loans need an external review?
The GLP recommend one where appropriate, but say that self-certification by a borrower with demonstrated expertise “can be sufficient”.
Has this site rated any green finance platform?
No. This page sets out what the principles and rules ask for, each cited, and ranks no product.
Sources
Primary sources
Every principle and rule on this page traces to the document listed here.
Checked against 15 sources fromICMALMA, APLMA, LSTALoan Market AssociationEUR-LexHM TreasuryFinancial Conduct Authority
- ICMAGreen Bond Principles, June 2025
Voluntary process guidelines; four core components; annual reporting until full allocation.
- ICMAGreen Bond Principles — page and supporting documents
The 2025 edition and its changes.
- LMA, APLMA, LSTAGreen Loan Principles, 26 March 2025
Same four components; reporting may go to the lenders only.
- Loan Market AssociationSustainable lending resources
The GLP and the March 2025 guidance.
- EUR-LexRegulation (EU) 2023/2631 on European Green Bonds
The optional “European Green Bond” designation.
- EUR-LexSummary: European green bond standard
“It has applied since 21 December 2024.”
- HM TreasuryUK Government Green Financing Framework 2025
In force 27 November 2025; seven categories including nuclear; annual reporting.
- HM TreasuryUK Government Green Financing: Allocation and Impact Report 2026
Published 15 October 2026; FY 2024–25 allocation; limited assurance.
- HM TreasuryUK Green Taxonomy: consultation response (15 July 2025)
Work on a UK taxonomy “should therefore not proceed”.
- EUR-LexRegulation (EU) 2020/852 (EU Taxonomy), Art 3
The four conditions for an environmentally sustainable activity.
- Financial Conduct AuthorityFCA Handbook ESG 4.3.1R — the anti-greenwashing rule
All FCA-authorised firms, from 31 May 2024.
- legislation.gov.ukDigital Markets, Competition and Consumers Act 2024, Part 4
Misleading practices to consumers.
- Financial Conduct AuthorityClimate change and sustainable finance
The FCA’s overview of its sustainable finance work.
- Department for Business and TradeUK SRS S2 Climate-related Disclosures (PDF)
Climate-related disclosures, including targets.
- Financial Conduct AuthorityPS26/19 — final rules on UK SRS reporting by listed companies
Comply or explain for UKLR 6, 14, 15, 16 and 22, periods from 1 January 2027.