'Green' bonds make up a fast-growing part of the $128 trillion bond market—Here's how they work

Green bonds mark a new segment of the global bond market. These debt instruments work like an average bond, but their proceeds are earmarked for climate-friendly projects. Sustainable bond issuance, which includes green bonds, may top $650 billion in 2021, according to Moody's. That's up 32% from 2020, making sustainable bonds about 8% to 10% of all the bonds being issued around the world. Here's how green bonds work, how issuers can be held accountable, and what may be next.