Green Bonds

by Developed Africa 18. March 2014 09:00

Green Bonds are being encouraged to ensure that environmentally friendly projects find funding, especially in developing countries.

Green Bonds are provided to investors in order to encourage them to invest into projects that have a climate-friendly impact. So far the biggest green bond disrtriubtors have been the European Union and the World Bank, but it seems that there is room for expansion.

The green bond principles recognise several broad categories of potential eligible green projects, including renewable energy, energy efficiency (including efficient buildings), sustainable waste management and land us (including forestry and agriculture) biodiversity conservation and clean transportation and water."

Quick explanation of how Green Bonds work:

 

It would appear that support for Green Bonds is picking up speed, with a lot of encouragement coming from Jim Yong Kim, President of the World Bank, urging an increase in the use of the bond. 

In Tunisia, green bonds issued by the World Bank help improve efficiency in irrigation and reliable water supply in rural areas where groundwater sources are stressed."

The introduction of Green Bonds can only be a good thing, as they should help to create a new era of development projects that are climate friendly and based in energy efficiency. 

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