Green Investment and Bonds

énergies renouvelables éoliennes panneaus solaires photovoltaique istock ll28
énergies renouvelables éoliennes panneaus solaires photovoltaique istock ll28

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