Green bonds

The document outlines green bonds as fixed-income instruments for environmental projects, noting that energy and buildings each account for approximately 30% of recent allocations. It identifies institutional investors as the core demand source and highlights the role of Multilateral Development Banks (MDBs) in providing cumulative issuances, such as the World Bank's over USD 200bn. The text details the issuance process, noting a typical 'greenium' of 2–5 bps and a timeline of 6–12 months for sovereign framework preparation.

• Green bonds are fixed-income instruments where proceeds are dedicated to environmental or climate projects, requiring issuers to report on environmental impact while maintaining the same credit terms as conventional bonds. Recent allocations are primarily distributed among energy and buildings (approximately 30% each) and transport (approximately 20%), with water and wastewater accounting for 5–10%.
• The green bond market is supported by commercial providers, such as institutional investors and banks, and concessional providers like MDBs and DFIs. Notable cumulative issuances include the World Bank (>USD 200bn), EIB (>USD 60bn), and AfDB (USD 10bn+). Additionally, the Green Guarantee Company provided USD 1bn in guarantees for EMDEs in 2023.
• Issuance costs and timelines vary by entity: a typical green premium (greenium) ranges from 2–5 bps. Sovereign debuts generally require 6–12 months for framework preparation plus 2–3 months for issuance, while corporate or municipal debuts take 8–12 weeks if projects are already organized.

APA

Climate Policy Initiative (2025). Green bonds. https://www.climatepolicyinitiative.org/toolkit-instrument/green-bonds-3/

Chicago

Climate Policy Initiative. Green bonds. 2025. https://www.climatepolicyinitiative.org/toolkit-instrument/green-bonds-3/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Green bonds |date=21 October 2025 |url=https://www.climatepolicyinitiative.org/toolkit-instrument/green-bonds-3/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025green, author = {{Climate Policy Initiative}}, title = {{Green bonds}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/toolkit-instrument/green-bonds-3/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }