The idea of green bonds or climate bonds is in fact quite simple: issue a bond and earmark the proceeds to green assets and investments. Make sure you’re transparent about what you’re doing and report back. Bingo. Sit back and bask in the glow of new investors, happier existing investors and burnished reputation.
We like people to feel good about issuing their green bonds because one of the things we’re trying to do in this market is draw attention to good work to address climate change where and when it’s already going on, and to encourage more.