BNP Paribas AM: Green bonds: investments generating environmental and ecological benefits

The Green Bond Principles define a green bond as any debt instrument whose funds are meant to finance or refinance ‘green’ projects, that is, projects with the ultimate goal of combating climate change or mitigating its impact.

Climate change is one of the biggest challenges of our time, and we believe green bonds are one of the best ways to finance activities with low greenhouse gas emissions, thus supporting the development of a low-carbon economy that takes climate change into account.

In recent years, the green bond market has exploded, from EUR 30 billion in 2013 to more than EUR 300 billion by year-end worldwide, according to BNP Paribas Asset Management estimates. Rapid expansion in this market has resulted in greater issuer diversification and issue numbers, as well as enhanced liquidity – two features essential in defining an investment solution in its own right.

Read more about our expert’s views on the potential of green bonds to both boost portfolio returns and help meet environmental obligations.