Green bonds

DEFINITION: Fixed-income financial instruments linked in some way to projects aiming to drive progress towards a low-carbon, resource-efficient or socially sustainable future. 

The majority of the green bonds issued are green “use of proceeds” or asset-linked bonds. Proceeds from these bonds are earmarked for green projects but are backed by the issuer's entire balance sheet. 

The green finance market grew from $87.2bn in 2016 to $155.5bn in 2017, a record increase of 78%, according to the Climate Bonds Initiative (CBI).