What are they?
A bond is a debt instrument that is interchangeable; you can buy and sell it. Companies use bonds as a way to access finances.
Green bonds are bonds that are only used to fund green projects, which have a positive impact on the environment. They have been around for over a decade, but they only started to be actively used in 2014. In 2020, green bonds issuance hit a record $269 billion (this makes around 1/5th of the annual budget to tackle climate change); they grow by 30% every year. Green bonds are one of the instruments with the highest impact reporting attached. It is part of the Green Bond Principles to release a yearly progress report.
Find out more on the Climate Bonds Initiative website.