Leg up for green bonds amid record sustainable debt in 2020
- Posted By
10Pointer
- Categories
Environment
- Published
18th Jan, 2021
-
Context
- Sustainable debt worth $732 billion issued globally; $305 billion of that in green bonds.
What is Green bond?
- Green bond is a fixed-income instrument designed specifically to support specific climate-related or environmental projects.
- Green bonds typically come with tax incentives to enhance their attractiveness to investors.
- In 2009, the World Bank issued the first official green bond.
What are Sustainability Bonds?
- Sustainability Bonds are bonds where the proceeds will be exclusively applied to finance or re-finance a combination of both Green and Social Projects.
Effect of COVID-19 on Sustainability Bonds
- COVID-19-related disruption affected issuance of some sustainable debt instruments in 2020, but spurred others.
- Overall growth of almost 30% in the market showed that sustainability continues to rise up on the agenda for investors, businesses and governments.
