What are Green Bonds primarily used for?

Green Bonds are primarily designed to fund projects that have positive environmental impacts. This includes but is not limited to financing renewable energy initiatives, energy efficiency improvements, pollution prevention measures, sustainable agriculture, and projects aimed at promoting clean transportation. The defining characteristic of Green Bonds is their commitment to financing activities that address climate change and contribute to environmental sustainability.

In contrast, financing stock market investments, supporting corporate mergers and acquisitions, or investing in real estate ventures do not align with the core purpose of Green Bonds. These options generally focus on financial returns without a specific emphasis on benefiting the environment, which is the fundamental goal of using Green Bonds. Thus, the correct answer emphasizes the alignment of Green Bonds with the funding of environmentally beneficial projects.