Green finance refers to capital backing ventures and businesses with clean environmental goals.
The concept of green bonds in the global finance ecosystem is fast catching up. Green bonds valued at $106.86 billion were issued in just the first quarter of 2021, according to a report published by the British non-profit Climate Bonds Initiative.
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.
The issuance of green bonds across the world rose to a record high of $269.5 billion in 2020 (60 percent growth rate since 2015) despite COVID-19, as per the Climate Bonds Initiative report. It crossed the $1-trillion milestone in 2020 and is estimated to grow to $2.36 trillion by 2023, the report said.