Green Clause

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Green Clause

A clause in a letter of credit allowing one to take out an advance loan before a shipment is sent if one puts up some collateral, often demonstrated by warehouse receipts. For example, a farmer may utilize a green clause to receive financing for operations, using his crops in a warehouse as collateral. A green clause is most common in contracts relating to agricultural commodities.
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Furthermore, investors may seek penalties for a green default, whereby a bond is paid in full but the issuer breaks agreed green clauses.
Green bond issuers guide
We are also seeing specific green clauses appearing in tenders for government departments.
Greener pastures
But when KWR's contract came up for renewal and it refused to add some green clauses to its contract to supply energy, Sladek was shocked.
Power to the people: from primary school teacher to renewable-energy revolutionary, Ursula Sladek took the power out of the hands of the energy giants and gave it to the people of Schonau in the Black Forest. Olivia Edward tells her remarkable story
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