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F12 Green bonds

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Description

Green bonds are similar to regular bonds, the difference is that the capital raised by green bonds is used for projects with positive environmental outcomes. The revenues for green bonds can be achieved through various means ranging from public budget allocations to market returns.

Example

San Francisco Public Utilities Commission has issued a Water Infrastructure Bond certified under the Climate Bonds Standard. Proceeds from this bond will fund eligible projects in sustainable storm water management and wastewater projects.

Source D6.3 Business Models and Financing Strategies