Green Bond Finance and Certification
16 Pages Posted: 26 Sep 2017
Date Written: September 17, 2017
Financing of investments through green bonds has grown rapidly in recent years. But definitions of what makes a bond "green" vary. Various certification mechanisms have evolved to allow more granularity as well as continuity in assessment. Green bonds have been priced at issuance at a premium on average relative to conventional bonds, but their performance in the secondary market over time has been similar. A relatively large share of green bonds are in sectors subject to environmentally related credit risks. More consistent green bond standards across jurisdictions could help to further develop the market.
JEL Classification: G24, O16, Q50
Suggested Citation: Suggested Citation