Green bonds are fast becoming one of the most interesting aspects of financial market innovation with increasing interest among investors in advanced and emerging economies alike.
The green bond market has clearly grown but compared to financial markets as a whole, it remains a drop in the ocean. It is estimated that in 2019, the total amount of sustainable debt (green bonds) issued climbed above $1 trillion. But this is still only 1 percent of the size of the global bond market.
Green bonds fund businesses and projects that are green – here are some examples:
Green bonds – evaluation comments
Green bond finance is still a relatively new concept – but the fast growth of responsible investing – targeting funds on climate smart projects – is one to watch. Can the greening of the financial system help accelerate the transition to a low-carbon economy and help mitigate the risks from the climate crisis?
This is an area of change in financial markets that is well worth following as part of your economics studies.
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