What are the differences between green bonds and conventional bonds?

What are the differences between green bonds and conventional bonds?

Green bonds are specifically issued to fund projects with environmental benefits, while conventional bonds are used for general financing.

Are green bonds considered safer investments?

Not necessarily. The safety of green bonds depends on the issuer's creditworthiness, just like conventional bonds.

What types of projects are typically funded by green bonds?

Green bonds often fund renewable energy, energy efficiency, clean transportation, and sustainable water management projects.

How do the returns on green bonds compare to conventional bonds?

Returns can vary, but green bonds may offer similar yields to conventional bonds, sometimes with added benefits like tax incentives.

Can you give me examples of popular green bonds?

Sure! Some popular examples include bonds issued by the World Bank, Apple, and various municipalities for green projects.