Green bonds, which first appeared in 2007, finance projects that deliver environmental or climate benefits such as climate change mitigation and adaptation investments.

The global green bond market is rapidly growing, from $3 billion in 2012 to more than $100 billion in 2017.

The Nordic region, particularly Sweden, Norway, and Finland, has pioneered the issuance of green bonds and used specific mechanisms to access debt markets to issue green bonds.

These bonds could be used by developing countries in Asia.

The increase in recent years of the use of green bonds is a consequence of a wider awareness among investors of sustainability and climate change following the Paris Agreement on climate change in 2015 and the United Nations’ adoption of the Sustainable Developments Goals.

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Read the working paper

https://www.adb.org/publications/green-bond-experience-nordic-countries

About the author

Darius Nassiry is a senior research associate at the Climate and Energy Programme, Overseas Development Institute, London, United Kingdom.

Know more about ADBI’s work on bonds

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