How finance folk use it
Bonds are fixed-income instruments which are used by companies, organizations or the government to raise funds. Green bonds are a certain type that are intended specifically for environment-oriented projects, such as tree planting, land preservation or rehabilitation, pollution reduction and sustainability.
For a bond to be classified as “green,” the issuer may have it certified by an independent third-party organization such as the international Climate Bond Standard Board.
Is it good or bad?
Green bonds are good because they allow you to invest in the environment’s future while also investing in your own future. Interest rates for green bonds are usually the same as those of regular bonds, so there is no sacrifice to be made by going green.
Just keep in mind that all bonds, like other investment types, are not free from risk.
What it means for you
Green bonds are a great way for you to help improve the environment. While this may matter most to someone with an eco advocacy, the interest rates help make this an attractive offer to all types of investors.
Green bonds aren’t yet common in the Philippine investment scene, although their number has been increasing in recent years as more companies and individuals have been giving more importance to the environment.
