Green Bonds & Sustainable Debt
How debt markets are mobilizing capital for climate action
Your Progress
Section 3 of 5The Green Bond Revolution
What Are Green Bonds?
Fixed-income securities where proceeds are exclusively used to finance climate-friendly projects. Structurally identical to conventional bonds, but with use-of-proceeds restrictions and impact reporting requirements.
2013
$11B
Early Days
2019
$258B
Acceleration
2021
$522B
Record Year
2023
$410B
Maturation
Four Pillars of Green Bond Principles
1
🎯
Use of Proceeds
Funds must support eligible green projects (renewable energy, clean transport, etc.)
2
✅
Project Evaluation & Selection
Clear process for determining project eligibility and environmental objectives
3
💰
Management of Proceeds
Transparent tracking of fund allocation, often via segregated accounts
4
📊
Reporting
Annual disclosure of fund usage and environmental impact metrics
🏗️ Green Bond Structure Designer
$500M
$100M$2B
Use of Proceeds Allocation
☀️ Renewable Energy40%
💡 Energy Efficiency25%
🚊 Clean Transport20%
🛡️ Climate Adaptation15%
Total Allocation:100%
40%
25%
20%
15%
Third-Party Certification
Credibility
Low
Investor Pool
Limited
📋 Your Green Bond
Total Issuance
$500M
Certification Cost
$0K
Estimated Demand
107%
Primary Use
Renewable Energy
Market Appeal: Good - strong investor interest
Beyond Green: The Debt Spectrum
Green Bonds
Environmental projects only
Appeal
Clear climate alignment
Risk
Greenwashing concerns
Green Label
Social Bonds
Social impact (health, education, housing)
Appeal
Addresses inequality
Risk
Harder to measure impact
Blue Label
Sustainability Bonds
Mix of green & social projects
Appeal
Holistic SDG approach
Risk
Dilution of focus
Purple Label
Sustainability-Linked Bonds
General corporate purposes
Appeal
Incentivizes company-wide KPIs
Risk
Weak targets, credibility gaps
Amber Label
Transition Bonds
High-carbon sector decarbonization
Appeal
Finances real-world transitions
Risk
Controversy over eligibility
Orange Label