Debt instruments such as green bonds that raise capital for climate-friendly projects have been around for a decade, yet it is only in the past few years that they have taken centre stage as an innovative and lucrative way to finance the fight against climate change.
Their value topped $100bn last year, and while these bonds resemble more traditional debt instruments in terms of structure and returns, their goal is to finance “green projects”, ranging from wind farms to smart buildings, and even helping fossil-fuel companies become more carbon efficient.
