Green bonds are financial instruments that raise funds for new and existing projects which deliver environmental benefits, and a more sustainable economy. These ‘Green’ projects can include renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change. 

Application

Green bonds are used by governments, cities, and corporations to finance environmental projects. For example, the Dutch Green Bond funds initiatives like flood prevention, renewable energy, energy efficiency, and clean transportation. In a more general sense, green bonds might be issued by a city to support sustainable public transport or renewable energy infrastructure. To ensure compliance with sustainability standards, it’s common practice to have an independent expert assess these bonds, guaranteeing that the funds are allocated appropriately for environmental benefits. 

Source: PWC UK, dsta.nl