What’s the true impact of green bonds?

Read the full story at GreenBiz.

One major stumbling block for implementation of the Paris Agreement (PDF) remains one of financing, particularly the opportunity for developing countries to catch up. In this environment, green bonds have emerged as one of the simplest solutions for raising money.

To some, this financing vehicle is almost a panacea: Issue green bonds and the problem will be solved.

But the link between issuance and impact is not automatic. How green, really, is the project financed by a green bond? Most progress indicators are stated in terms of green financing made available, such as the Green Pledge, which calls for $1 trillion of green bonds to be issued during 2020. But most don’t measure the impact of the projects financed.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.