A Green Bond is a fixed income instrument specifically designed to support specific projects related to climate or the environment.
Green bonds may have tax incentives to make them more attractive to investors.
The World Bank is a major issuer of green bonds. Since 2008, 164 such bonds have been issued for a total of $14.4 billion.
The phrase “green bond” is sometimes used interchangeably with climate bonds or sustainable bonds.
According to the Climate Bond Initiative, in 2020, total green bond issuance was almost $270 billion. The cumulative issuance since 2015 is over $1 trillion.