They’re designed to fund projects that have a positive environmental impact. But green bonds are being used as a mask for environmental destruction. We should fix this while we still have time, says Assaad Razzouk.
These days, green bonds seem to feature prominently in the news, with investors from Europe, the US and Asia flocking to them and banks building brand value from their environmental sheen.
Designed to fund businesses and projects that have positive environmental benefits and around for some 10 years, they account for a tiny 0.4 per cent of the $100 trillion global bond market. Over-hyped, they are being misused and do more harm than good.