Featured Pathways

More pathways

The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Book a demo

Ready to get started?

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Book a demo

Ready to get started?

Featured Pathways

More pathways

The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Book a demo

Ready to get started?

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Book a demo

Ready to get started?

Book a demo

Ready to get started?

What is a Green Bond?

What is a Green Bond?

Meggie Eloy

5 years: Technical analysis

In this video, Meggie explains the concept of green bonds and how they function as financial instruments designed to fund environmentally beneficial projects, such as renewable energy and energy-efficient infrastructure. She also covers related types of green bonds, including blue bonds and transition bonds. Finally, she highlights how green bonds contribute to a sustainable, low-carbon economy, helping drive both environmental and financial innovation.

In this video, Meggie explains the concept of green bonds and how they function as financial instruments designed to fund environmentally beneficial projects, such as renewable energy and energy-efficient infrastructure. She also covers related types of green bonds, including blue bonds and transition bonds. Finally, she highlights how green bonds contribute to a sustainable, low-carbon economy, helping drive both environmental and financial innovation.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

What is a Green Bond?

8 mins 26 secs

Key learning objectives:

  • Understand what green bonds are as well as two associated sub-classes, blue and transition bonds

  • Understand the difference between green bonds and transition bonds

  • Outline the benefits of green bonds for issuers, investors and society as a whole

Overview:

Green bonds are financial instruments where proceeds fund projects with environmental benefits, such as renewable energy or energy-efficient infrastructure. They require annual reporting and external reviews to validate their environmental impact, ensuring transparency and preventing greenwashing. Variants include blue bonds, targeting marine and coastal projects, and transition bonds, aiding high-emission sectors in decarbonisation efforts. Benefits for issuers encompass access to new capital sources, diversified investor bases, improved governance, and enhanced reputations. Investors gain portfolio diversification, meet ESG mandates, and enjoy increased transparency. Green bonds drive the shift toward a sustainable, low-carbon economy by funding environmentally beneficial initiatives.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary
What are green bonds, and how do they function?

Green bonds are debt securities issued to finance projects that have positive environmental benefits, such as renewable energy installations, energy-efficient buildings, or sustainable infrastructure. The issuer raises capital from investors with the explicit commitment that the proceeds will be used exclusively for green initiatives. These bonds function like traditional bonds in terms of structure and financial returns but are distinguished by their dedicated use of funds for environmental projects. Investors are attracted to green bonds because they offer a way to support sustainability while earning a return on investment.

How do green bonds differ from unlabelled (traditional) bonds?

The key difference between green bonds and unlabelled (traditional) bonds lies in transparency and accountability regarding the use of proceeds. Green bonds require issuers to commit to annual reporting on how the funds are allocated and the environmental impact achieved, often verified by external reviews. This ensures that the money is spent as intended and that the environmental benefits are realised. Unlabelled bonds lack these specific commitments; issuers are not obligated to disclose how the funds are used, providing less assurance to investors about the social or environmental impact of their investment.

What are blue bonds and transition bonds, and how do they relate to green bonds?

Blue bonds and transition bonds are specialised types of green bonds. Blue bonds finance projects related to marine and coastal environments, such as sustainable fisheries or ocean conservation efforts. Transition bonds are issued by companies in high-emission sectors aiming to reduce their carbon footprint, financing projects that help them transition toward low or zero emissions. Both types fall under the umbrella of green bonds because they fund initiatives with positive environmental impacts. They expand the scope of sustainable financing to include critical sectors and ecosystems essential for achieving global climate targets.

What are the benefits of green bonds for issuers, investors, and the overall economy?

Issuers benefit from green bonds by accessing new capital sources and diversifying their investor base, often attracting investors focused on sustainability. The reporting requirements enhance internal governance and can improve the issuer's reputation as a responsible entity. Investors gain opportunities to diversify their portfolios with sustainable investments that meet Environmental, Social, and Governance (ESG) criteria, along with increased transparency about the use of their funds. For the overall economy, green bonds drive innovation, support the transition to a low-carbon economy, and align financial markets with environmental sustainability goals, fostering long-term economic and ecological benefits.

How do green bonds ensure environmental benefits and prevent greenwashing?

Green bonds ensure environmental benefits through mandatory annual reporting and external reviews. Issuers are required to report on the allocation of proceeds and the environmental impact of the projects financed, providing transparency and accountability. External reviewers, such as assurance providers or second-party opinion firms, assess the green credentials of the bond before issuance, verifying that the projects meet established environmental standards. This rigorous process prevents greenwashing by ensuring that funds are genuinely used for their intended environmental purposes and that claims of sustainability are substantiated, thereby maintaining investor confidence in the green bond market.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Meggie Eloy

Meggie Eloy

Meggie Eloy is a Senior Technical Analyst in CBI's Capacity Building and Technical Assistance team, providing technical assistance to prospective debt issuers through portfolio reviews, entity readiness assessments, GSS+ training, and capacity building. She also supports clients in creating credible transition plans by reviewing existing plans to ensure they follow best practice guidelines. Prior to her role, she worked in CBI's Certification team, reviewing and processing green bond applications to determine certification. She has assisted in delivering over 300 billion US Dollars of Use of Proceeds debt instruments, focusing on limiting global warming to at or below a 1.5°C future. Meggie has worked across sectors such as Renewable Energy, Low Carbon Buildings, Low Carbon Transport, and the transition of hard-to-abate sectors like Steel, Cement, Hydrogen, and Basic Chemicals. She holds an MSc in Corporate Environmental Management from the University of Surrey, a BSc in Geography from the University of Leicester, and a CFA Level 4 qualification in Climate and Investing.

There are no available Videos from "Meggie Eloy"