Green Bonds Aren't Driving Climate Action in US, Study Says.

A recent study has found that the majority of green bonds issued in the US do not effectively contribute to addressing climate change. The analysis of green bonds sold between 2013 and 2022 revealed that only about 2% of the proceeds were used for genuinely unique or innovative projects. Instead, a significant portion of the funds were used for refinancing existing debt or expanding similar projects. The study also highlighted that investors do not differentiate between bonds based on their climate impact. While the green bond market has grown to over $3 trillion globally, this research suggests that the label itself does not guarantee that funds are being directed towards truly impactful projects. [Extracted from the article]