Green Bonds vs Sustainability-Linked Bonds: Which Will Speed Up the Green Transition?

Chiara Caprioli discusses the factors driving the surge in Green Bond issuance which reached $1tn dollars in 2020. The application and scope of Green Bonds and Sustainability-Linked Bonds has been broadening with increased maturity of the market, higher levels of sophistication and the proliferation of knowledge of such bonds. The enhanced reporting and verification requirements set out by the EU Green Bond Standards and the EU Taxonomy for Sustainable Activities can potentially reshape the fundamentals of the Green Bond market and drive additional growth.