Green Investment and Bonds

Green investment encompasses all actions to fund low carbon projects. This type of investment leads to a reduction in CO2 emissions as it funds renewable energies or improves the energy efficiency of existing technologies.

Recently, one particular financial product has gained wide recognition in the financial industry: the Green bond..This specific type of bond is designed to fund dedicated green projects. According to the Climate Bond Initiative, $41.8bn green bonds were issued in 2015.

The more the market grows, the more market standards are established: these help investors better identify the environmental benefits of an investment. Two initiatives and frameworks are well acknowledged in the financial market: the green bond principles and the Climate Bond initiatives.

By October 2015, roughly 330 investors with €20.4tn assets under management were investing in green investments.

Read the full Novethic study to learn more