In March 2025, Slovenia introduced its inaugural Sustainability-Linked Bond (SLB) framework, marking a significant milestone as the first European sovereign to establish such a structure. This framework aligns with the International Capital Market Association’s (ICMA) Sustainability-Linked Bond Principles and is designed to integrate the nation’s financing strategies with its environmental objectives. Key performance indicators (KPIs) include targets for reducing greenhouse gas emissions, increasing the share of renewable energy consumption, and enhancing energy efficiency. Notably, the framework incorporates financial incentives, such as potential interest rate adjustments, contingent upon the achievement of specified sustainability performance targets (SPTs).

Slovenia’s SLB framework is a component of its broader commitment to achieving climate neutrality by 2050, as outlined in its National Energy and Climate Plan (NECP). The framework has received a Second-Party Opinion from S&P Global Ratings, which assessed the selected KPIs as “advanced” in terms of relevance and ambition. The country’s proactive approach, including plans to issue its first SLB in June 2025, is expected to inspire other nations to adopt similar mechanisms, thereby fostering greater accountability and progress in global climate initiatives.