Thematic bonds such as green, blue and social bonds (i) raise money for investments that delivers sustainable economic and social outcomes and (ii) offer investors the opportunity to earn competitive financial returns and diversify their portfolios while supporting positive societal impact. These bonds are bought by a growing number of investors who have begun to embed Environmental, Social, and Governance (ESG) standards into their investment decisions. The World Bank (Bank) has played a leading role in founding and developing these markets.
What are green and blue bonds?
Green and blue bonds raise financing for development with clear environmental benefits on land and at sea, e.g. power generation from renewables, infrastructure that increases energy efficiency, and sustainable fishing economies.
What are social bonds?
Social bonds finance projects that benefit under-served populations with limited access to essential services such as basic infrastructure or finance.
What are the challenges?
There has been slower growth in green bond markets in emerging countries than developed ones, largely due to less developed capital markets and lack of market awareness and knowledge of the green bond issuance process.
Treasury Advisory Services
The World Bank Financial Advisory and Banking team facilitates the development of green, blue and social bond markets in emerging markets through pre- and post-issuance technical assistance for issuers.
