What is a green bond?

A green bond is a bond intended to finance environmentally friendly projects and investments. This means that the proceeds of the bond will be used, for example, for renewable energy projects, improving energy efficiency or other projects related to the environment.

Green bonds are part of financial instruments that promote responsible investment and sustainable development. They offer investors the opportunity to support environmentally friendly projects while receiving a financial return on their investment.

The market for green bonds has grown significantly in recent years, and they have gained more and more popularity among investors. Many companies and organizations have started to issue green bonds as part of their sustainable development strategy.

Sources: Investor .fi, Nordea