Beyond the Label: An Assessment of the Green Bond Market
Highlights
- Growing interest in ESG focused investments is causing demand for green bonds to outpace supply
- Lack of consensus about labeling, certification and terminology highlights the need for investors to focus on the characteristics of each green bond and its issuer
- How issuers track corporate bond proceeds suggest that municipal green bonds may provide more certainty about the proceeds’ sustainability impact
- Financial and risk/return characteristics of green bonds and their conventional counterparts are similar
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