What are Green Bonds?

🟡 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.