In 2013, the International Finance Corporation (IFC) packaged and issued a new financial instrument – a so called “green bond” – which was identical in price and returns to other IFC bonds, so provided no extra perks, the only difference was that the IFC promised to invest the money received for this bond in climate friendly projects. The bond sold out in one and a half hours, and was 3 times oversubscribed. A few days later Korea’s Export-Import Bank issued its first green bond for renewable energy, energy efficiency and water projects the Korean Government had planned. The day after the $500m green bond sold out, an email was sent to the network of bankers working in capital markets around the world, with the header “green is the new black”.


Boulle, B., Frandon-Martinez, C., Pitt-Watso, J (2016) Bonds and climate change: The state of the market 2016.

Boulle, B., Meng, A., Frandon-Martinez, C., McAvinue, R., Triparthy, A., Giuliani, D., & Elliot, C. (2017). Bonds and climate change: The state of the market 2017.

Giuliana, D. and Sonerud, B, (2018). Sovereign Green Bond Briefing. Climate Bonds Initiative.

LSE Public Lectures (2016) Green Bonds: a solution to finance the future?

Ng, T. H., & Tao, J. Y. (2016) Bond financing for renewable energy in Asia. Energy Policy, 95, 509–517.

UK Parliament (2017) Green finance: mobilising investment in clean energy and sustainable development

United Nations Secretary-General Climate Change Support Team (2015) Trends in Private Sector Climate Finance Report. Retrieved from

UNEP Inquiry (2015) The Financial System We Need.

UNEP Inquiry (2017) Green Finance Progress Report, Retrieved from

Chappatta, C.. Green-Bond Market Needs to Get Tough to Blossom, Brian Chappatta, Bloomberg Opinion, 18 July 2018