Difference between Green Bonds and Standard Bonds
Basis |
Green Bond |
Standard Bond |
---|---|---|
Purpose |
Used for funding only environmentally viable projects. | Used for any financial projects or purpose depending on the issuer. |
Can be issued by |
Governments (both central and state), municipalities, or corporations. | Corporations, Governments, and municipalities. |
Framework |
There is a green bond framework where all the eligibility criteria and project guidelines | No such framework guidelines pertain to standard bonds |
Investor Appeal |
Socially responsible investors are attracted | Investors who seek financial returns invest in these bonds |
Certification or Verification |
Prior to investing, certification or verification is sought by investors. | No such certifications are required. |
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