Green bonds, once characterized as novelty investments, are now an integral part of institutional investors’ core fixed-income portfolios and represent the entire investment chain, ranging from corporate to municipal bonds and sovereign bonds.
The global transition toward a low-carbon and climate-resilient economy requires common, science-based frameworks against which governments, the private sector, and individuals can determine whether activities contribute meaningfully to that transition. Developing a standardized language for determining what activities contribute to climate change mitigation and adaptation is a primary focus of international policymaking efforts to meet the Paris Agreement targets.
The definition and taxonomy of projects; the use and management of raised funds and proceeds; evaluation and certification; and information disclosure are the four key pillars that constitute the standard framework of green and climate bonds.
Cary Krosinsky Editor Looking back on Angelo Calvello’s Environmental Alpha, one is struck by the prescient points that still resonate in a modern context, even though the field is rapidly evolving as we speak. For example, the opening sections on climate change predicted almost exactly what has occurred since the book’s publication in 2010, hence giving further …