‘Green financing’ is a structural financial activity that seeks to improve environmental outcomes of projects. It can be in the form of loans, debt mechanisms or investments that are channelled to those projects which limit carbon emissions into the economy (mitigation) or minimise the negative impacts of existing projects (adaptation). One such emerging green financing tool is green bonds. Green bonds represent, by far, the largest and most mature segment of the sustainable debt market. The T20 Policy Brief provides a summary of the global green bonds market, and discusses the role that G20 economies can play in improving it. It suggests measures to mitigate the risks associated with green financing and scale up the green bonds market across the G20 economies.
The full report can be read here
