The green bond market is the segment of fixed-income capital markets in which debt instruments are issued specifically to finance projects with environmental or climate benefits, such as renewable energy, clean transport, or sustainable infrastructure. Proceeds are ring-fenced and reported against recognised frameworks like the ICMA Green Bond Principles. It channels institutional capital toward decarbonisation while offering investors verifiable sustainability exposure.
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- Issuance requires transparent allocation reporting and frequently third-party verification of environmental impact. Tokenisation efforts aim to bring green bonds on-chain to improve traceability of proceeds and impact metrics, reducing greenwashing risk and lowering settlement costs.