Are you planning on investing in green bonds? Here is what you need to know
A green commitment is a commitment whose proceeds are used to fund environmentally friendly projects. These normal new types of bonds increase in popularity from the perspective of investors at an exponential rate. The issuance of green bonds in 2019 was $ 254 billion - the first recognized green commitment was issued in 2008. The number of green bonds is expected to continue to rise as attention builds and more investors become concerned about climate change. Although they are a fairly new segment in the bond market, investors will in the coming years certainly hear about the environmentally conscious offerings that define green bonds. Green bonds help environmentally friendly projects Green bonds are designed to help the environment by directing parts of the capital raised to projects related to clean water, renewable energy, energy efficiency, restoration of rivers and habitats or mitigation of climate change effects. Many bond funds invest part of their capital for such reasons,