Green bond
A green bond is not a particularly tightly defined term, but is generally thought of as a fixed income instrument launched to fund specific environmental or green projects such as projects to reduce CO2 emissions.
The amounts issued have grown rapidly, according to information collated by the Climate Bonds Initiative, a non profit organisation established in 2010. However, total amounts issued remain a relatively small proportion of total bond issuance.
Guidelines for green bonds, the Green Bond Principles, have been issued by a group of 25 leading banks, coordinated by the ICMA (International Capital Market Association), to establish a voluntary framework for these instruments.
Green bonds are an important part of green finance.
Green bonds are also sometimes known as 'ESG' (Environmental, Social and Governance) bonds.
See also
- Blue bond
- Carbon footprint
- Carbon-neutral
- Climate Bonds Initiative
- ESG investment
- EU Green Bond Standard (EUGBS)
- Fixed income
- Green Bond Principles
- Green Bond Technical Assistance Program
- Green finance
- Greenium
- Greenwash
- International Capital Market Association (ICMA)
- Intergovernmental Panel on Climate Change (IPCC)
- Retail bond
- Sustainability bond
- Sustainability-Linked Loan Principles
Other resources
A practical insight into green bonds and ESG investing, The Treasurer web exclusive, June 2019
