Author(s): Torsten Ehlers and Frank Packer
Date published: Jul 2018
SUERF Policy Note, Issue No 39
By Torsten Ehlers and Frank Packer, Bank for International Settlements
JEL-codes: G24, O16, Q50.
Financing of investments through green bonds has grown rapidly in recent years. But definitions of what makes a bond “green” vary. Various certification mechanisms have evolved to allow more granularity as well as continuity in assessment. Green bonds do not necessarily provide a hedge against environmental risks, as a relatively large share of green bonds are in sectors subject to environmentally related credit risks. More consistent green bond standards across jurisdictions could help to further develop the market.
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