oboloo Glossary

Green Bond

oboloo Glossary

Green Bond

A Green Bond is a type of financial instrument used for investing in projects that have positive environmental or climate-related impacts. They are designed to raise capital intended exclusively for green initiatives such as renewable energy, conservation, and renewable resource development. The issuing organization generally receives funding from investors, through either public or private markets, to fund eligible projects with the assurance that the proceeds will be allocated solely towards environmentally-focused activities. In this way, investors can invest in projects that they believe align with their values – all while achieving a potential return on their investment.