Green Bonds: Capitalism Goes Green

Aaron Foyer

A green bond is like a regular bond, a fixed-income financial instrument, except it is specifically allocated towards projects which have a positive environmental benefit. Green bonds offer a solution to the trillions of dollars of investment required to combat climate change.

Global Renewable Energy Spending

Over $3.2 trillion US dollars have been spent on renewable energy since 2004

The Rise of Green Bonds

The issuance of green bonds has increased 15x since 2013

What do Green Bonds Finance?

Green bonds cover a vast range of industries including energy, transport, waste management, building construction, water and land use.

The largest use of green bonds has been used to financial renewable energy projects.

The Top Financiers

The cumulative issuances of green bonds are below USD 1 trillion while the global bond market is valued at around USD 100 trillion. These emerging financial instruments are driving the energy transition and will continue to grow into the future.