Slovenia pioneered the EU's first Sovereign Sustainability-Linked Bond (SLB) Framework in March 2025, a novel approach connecting its borrowing costs to achieving ambitious environmental targets aligned with both national and EU climate goals. This framework, validated as "advanced" by S&P Global, utilises three key performance indicators focused on GHG emissions reduction, increased renewable energy share, and improved energy efficiency, featuring a tiered coupon system that incentivises target attainment through financial rewards or penalties. While strategically significant and potentially replicable, the framework faces implementation challenges related to geographic constraints, socioeconomic disparities, and the complexities of data verification. Ultimately, Slovenia's initiative demonstrates a commitment to climate accountability within sovereign finance, offering a blueprint for other nations pursuing sustainable development