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Last updated 7 Aug 2019
Green bonds are one increasingly popular option for the financing of investments that provide environmental benefits such as the funding of renewable energy projects, transport infrastructure and measures to increase the resilience of communities to the impact of climate change.
A growing number of national and regional governments are considering issuing green bonds and some economists have argued that the central bank strategy of quantitative easing (QE) could and should be amended to allow a central bank to create money to purchase newly-issued green bonds. Despite the recent expansion, green bonds remain a very small percentage of the total global bond market.