What are green bonds? 5 things to know

1.A green bond is a type of bond issued to raise funds for projects with environmental benefits.
2.Governments, corporates and other organisations can raise green bonds to fund projects that have a positive impact on the climate and environment.
3.Some such projects are clean energy like solar and wind, clean transportation, green buildings, etc.
4.Green bonds are typically fixed interest-bearing financial instruments.
5.These bonds help to mobilise large amounts of capital for governments from environment-conscious investors to help transition to a low-carbon economy.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.