Green bonds
Green bonds are bonds whose capital is earmarked for environmental and climate projects.
What are green bonds used for?
• Renewable energy (wind farms, solar power plants)
• Energy-efficient buildings
• Clean transport (electric buses, rail)
• Water treatment and supply
• Reforestation and biodiversity
Who issues green bonds?
• States: Germany issued its first green federal bond in 2020
• EU: the EU recovery fund uses green bonds
• Companies: Apple, Volkswagen, EnBW
For private investors: investable via green bond ETFs (e.g. Lyxor Green Bond ETF). Return and risk similar to normal bonds – but your money finances climate protection instead of fossil energy.
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