In the contemporary landscape, green bonds have garnered considerable attention as a vehicle for funding initiatives with favourable environmental outcomes. Classified as a form of fixed-income security, green bonds mobilise capital for projects dedicated to environmental wellbeing, encompassing domains like reforestation, renewable energy, sustainable agriculture, and clean transportation. This blog delves into emerging structures within the realm of green finance, shedding light on innovative instruments such as green securitisations, sustainability-linked bonds, and green social bonds. These financial mechanisms not only align with the ethos of social responsibility but also stand in contrast to ordinary bonds by prioritising eco-friendly endeavours in their investment focus.
