What are Green Bonds?
๐ก What are Green Bonds?
✅ A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.
✅ These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.
✅ The World Bank issued the first official green bond in 2009.
✅ Green bonds come with tax incentives such as tax exemption and tax credits, making them a more attractive investment compared to a comparable taxable bond.
✅ Dating back to the first decade of the 21st century, green bonds are also referred to as climate bonds.
✅ These tax advantages provide a monetary incentive to tackle prominent social issues such as climate change and a movement to renewable sources of energy.
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