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[upbeat music]A corporation, a government, or a branch of the government, like a municipality or an agency, for example, the BNDES, needs money to carry out a certain activity, so it goes out to raise funds directly from investors.

So it issues this document, this debt security, and then it's presented to these investors.

So but why is it green, right? It's green because it goes through certain stages to establish credibility.

A green bond has to have its funds allocated exclusively to projects, activities, or even assets, like a power plant, for example, that will generate ecological benefits, right? So yeah.

Yeah, it has to be environmentally sustainable.

But Vanessa says it's more about paperwork and self-reporting than actually verifying environmental benefits.

The idea is that the government doesn't need to be involved in this regulation or verification process.