Which of the following best describes 'Green Bonds'?
- Bonds issued to finance projects with environmental benefits, such as renewable energy or clean transportation
- Bonds that guarantee profit regardless of project outcome
- Bonds exclusively for fossil fuel projects
- Government bonds with no environmental criteria
Answer: Bonds issued to finance projects with environmental benefits, such as renewable energy or clean transportation
Green bonds mobilize capital for climate and environmental projects, with proceeds earmarked for eligible uses and often subject to external verification for credibility.