Financial Quotient

What are green bonds?

Green bonds are designated bonds issued to fund projects that are expected to generate positive environmental impact and/or climate benefits. According to the Green Bond Principles (GBP), eligible categories for green projects include renewable energy, pollution prevention and control, and environmentally sustainable management of living natural resources and land use.

There are four types of green bonds in the market: standard green use of proceeds bond; green revenue bond; green project bond and green securitised bond.

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A version of this article appeared in the print edition of The Sunday Times on August 05, 2018, with the headline 'What are green bonds?'. Print Edition | Subscribe