What are the main challenges facing the green bond market?
The green bond market faces several challenges, including lack of standardization, limited investor awareness, and regulatory hurdles.
Can you elaborate on the lack of standardization?
Certainly! The lack of standardization means that there are no universally accepted criteria for what qualifies as a 'green' project, leading to confusion among investors.
How does this affect investor confidence?
It can significantly undermine investor confidence, as they may be unsure if their investments are genuinely contributing to environmental sustainability.
What are some regulatory hurdles?
Regulatory hurdles include varying definitions of green bonds across countries, which complicates cross-border investments and compliance.
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