The initiative to make an investment in the projects related to climate change is taken for the sake of a better and positive environment. Green bonds are basically the bonds which are designed to contribute to the energy projects which can generate more benefits for the climate affected factors. It has been evident that the climate is rapidly changing and this change is adding to the misery of the world. Climate change has now become a colossal problem which must be dealt with at once.
With the help of countless energy projects, the green bond is all set to combat the climatic change with the utilization of capital portions. By funding these portions into energy projects, including clean water and renewable energy, a massive shift in the climate is expected to be observed. These bonds, called financial instruments, will prove to be a valuable asset to the climate situation years from now. Green bonds can also prove to be a significant source of income for the investors who are investing their money in this productive cause. They might have a good chance to reap its benefits later. Likewise, the issuers of Green bonds can also be profited since many investors are likely to invest in this noble cause in future.
However, there are still many countries that have not caught up to the idea of Green bonds yet. Till now, the USA has successfully issued the most green bonds. Other countries that have followed the trail include Germany, Spain, China, and the Netherlands. As mentioned in the reports, the projects which are funded by Green bonds include pollution, habitat restoration, renewable energy and most importantly, clean water. This initiative was first set in motion in 2008, and it has been roughly thriving ever since. It still has a long way to go, and that is only possible if investors start paying heed to the current climate situation.
Infographic by: Energyminute.ca