Green Bond

A Green Bond is a fixed-income debt instrument issued by governments, financial institutions, or corporations to exclusively finance or re-finance projects that have a positive environmental or climate-related impact, such as renewable energy, sustainable waste management, or clean transportation. These bonds operate under the same financial principles as conventional bonds but are distinguished by the ring-fencing of their proceeds for specific "green" projects, adhering to voluntary standards like the International Capital Market Association's (ICMA) Green Bond Principles (GBP).