Overview
Green bonds are debt securities issued to finance projects with positive environmental outcomes. These include renewable energy installations, energy-efficient buildings, clean transportation, and sustainable water management. The green bond market has grown exponentially, with annual issuance exceeding $500 billion. They offer investors a way to support sustainability while earning market-rate returns. Verification and reporting standards ensure proceeds are used for genuine environmental purposes.
Tags
sustainable financeESG investingfixed incomegreen finance
Economic Impact
High Impact
Over $500B annual issuance, mobilizing private capital for climate solutions at scale.
Emerged
2007
Related Topics
Finance
Carbon Credit Trading
Market-based approach allowing companies to buy and sell emission allowances.
Policy
ESG Reporting Standards
Frameworks for disclosing environmental, social, and governance performance.
Finance
Impact Investing
Investments made to generate measurable social and environmental impact alongside returns.