Green Bonds and Climate Financing

Fixed income is a way to change humanity's outcome.

Key information

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.

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Characteristics of Bonds:

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

Sustainability Assessment Methods:

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.

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