Green bonds are standard bonds created to finance environmentally beneficial projects. There are four types of green bonds:
The Green Bond Principles, a set of voluntary best practice guidelines, identify key opportunities for green bond projects. Several of these opportunities cover elements of the circular economy, including:
Investor demand for green bonds continues to grow as Environmental, Social and Governance (ESG) criteria become increasingly important. Institutional investors, ESG investors, governments, corporate treasuries and retail investors are all including green bond projects into their portfolios.