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PARTNERSHIP | Autumn 2019 12 The Green Bond Market Investing to help the planet C ompared to other bonds, green bonds are characterised by their second goal: sustainability, environmental protection and related projects. This market is growing fast, with a total issuance in 2018 of $168.5bn and an estimated issuance of $250bn for 2019. Given the figures, the green bond market certainly plays an important role in the economic system, presenting an opportunity to act for the environment and combating climate change. Projects falling under the green bond category are various and diversified, from energy efficiency to water management, passing through sustainable agriculture, pollution prevention and ecosystem protection. The origins of this bond category are usually attributed to the European Investment Bank in 2007, when the latter started investing in climate awareness bonds, followed by the World Bank Group who created a supply of investable green bonds. Later, they started being issued by various private companies, municipalities and government agencies. Green bonds come from proceeds that are allocated to environmental projects that can vary from climate change projects to parks’ development plans. In terms of returns, they have the same as other bonds, with the difference that investing in them is not only about the economic growth of a company, but also about investing in the future of our planet. The green bond market is increasing thanks to the participation of big firms from emerging countries (like China and India) and by the attention given by supranational institutions to environmental sustainability issues. In other words, green bonds can be a new and fresh beginning for companies that decide to issue them to enter the green system, focusing on the environment and on climate change. These companies will undergo changes in their internal governance and organisation as well, because if they want to issue green bonds for the first time or re-fund the green investments, they must comply with strict parameters and structures. THE CLASSIFICATION There is no official worldwide taxonomy yet to classify which investments qualify for the green bond status, thus there are third party entities, such as the Climate Bond Standard Board, that verify and certify that the bonds are aimed at funding projects that include benefits to the environment. The Board reports to the Climate Bonds Initiative, a non-profit investor- focused body promoting investments in projects and assets that are necessary