What are green bonds? 5 things to know
1.A green bond is a type of bond issued to raise funds for projects with environmental benefits.2.Governments, corporates and other organisations can raise green bonds to fund projects that have a positive impact on the climate and environment.
3.Some such projects are clean energy like solar and wind, clean transportation, green buildings, etc.
4.Green bonds are typically fixed interest-bearing financial instruments.
5.These bonds help to mobilise large amounts of capital for governments from environment-conscious investors to help transition to a low-carbon economy.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
