Green finance

Green finance can fund projects such as renewable energy, energy efficiency or pollution reduction through instruments including loans and bonds. The financial terms, eligible uses, reporting and external review depend on the arrangement and applicable standards or rules. Assess additional costs, environmental performance, funding risk and whether the stated use of proceeds is credible. A green label does not automatically guarantee a lower financing cost, positive environmental impact or compliance with every sustainability standard. Distinguish green use-of-proceeds instruments from structures whose terms depend on broader sustainability performance targets.