Green Bonds and Climate Financing
Fixed income is a way to change humanity's outcome.
Last updated
Fixed income is a way to change humanity's outcome.
Last updated
In November 2008, the World Bank became the first institution to issue a green bond.
Green bonds typically have the same structure, credit risk, yield, and rewards as traditional bonds.
Their differentiation comes from “greenness” or being environmentally friendly.
Although that is not particularly well regulated, the investment in itself is structured just like any other fixed-income security.
There are also social, blue bonds, etc.
It is useful to learn more about traditional and sustainable bond factors to better understand how we finance projects using bonds. Source: Schoenmaker and Schramade, 2019.
Traditional Bond Factors
Sustainable Bond Factors
There are many valuation methods useful in analyzing and financing sustainability. Below are just a few of the methods possible and some useful research papers to help you learn more.
