What significant effect do green bonds aim to create in the market?

Green bonds are specifically designed to raise funds exclusively for projects that have positive environmental impacts. They aim to channel investment into initiatives such as renewable energy, energy efficiency, pollution prevention, sustainable agriculture, and conservation projects. By providing a mechanism for investors to support environmental sustainability, green bonds foster the development of a green economy and facilitate the transition towards low-carbon energy systems. This targeted funding approach is what fundamentally distinguishes green bonds from conventional bonds, thereby creating a significant impact in the market by promoting sustainable development and environmental responsibility.