Green Bonds: Financing a Sustainable Future

Abstract

The global imperative to transition towards a low-carbon, sustainable economy has placed immense pressure on financial markets and policy frameworks to mobilise capital for environmentally beneficial projects. Among the instruments that have emerged to meet this challenge, green bonds stand out as debt securities whose proceeds are earmarked for projects that deliver environmental benefits. This paper provides a comprehensive review of green bonds — their evolution, structures, market dynamics, regulatory and standard-setting frameworks, empirical evidence on their financial and environmental performance, key challenges (including “greenwashing”), and prospects for scaling up. In doing so we highlight both the promise of green bonds and the gaps that warrant further research and policy action.