The Rise in Green Bonds: What This Means for Investors and Our Planet

Nov 8, 2021 10:10 AM ET

The Rise in Green Bonds: What This Means for Investors and Our Planet

by Leslie Samuelrich, President of Green Century Capital Mgmt and Green Century Funds 

In the first half of 2021, the total value of new green bonds issued reached $248.1 billion, more than the value of all bonds issued in all of 2020.

Green bonds help finance environmental and climate change mitigation projects around the world, and they’re already proven to be an effective way to mobilize capital. They have the same fundamental risk and return characteristics as conventional bonds, and investors may not need to sacrifice yield or assume additional risk to add these fixed income options to their portfolios.

The rising use of green bonds is great news for our planet. We need to invest roughly $6.9 trillion in sustainable infrastructure each year up to 2030 to meet the goals of the Paris Agreement – and government budgets are insufficient. Green bonds are playing an increasingly important role in mitigating climate change. While the marketing of green bonds is expanding, not all “green” bonds fund projects with clear and measurable environmental benefits. To ensure that you and your clients are making an impact, you may want to seek bonds that follow the standards that we use...

Find out more in Leslie's full article herehttps://greenmoney.com/the-rise-in-green-bonds-what-this-means-for-investors-and-our-planet