The “story” of GreenBond Every successful revolution has its own story – it usually starts with noble intentions of brave, forward-thinking individuals, communities, organisations and governments, to bring positive change to the society. The evolution of the green bond1 is no different – what initially begun as a traditional framework for raising capital to fund ‘green’ activities with an environmental benefit, to an instrumental “game changer” to spark a sustainability revolution in the market.

The first green bond was issued by the World Bank in 2008. The World Bank was approached by a group of Swedish pension funds, which were looking for avenues to make climate-friendly investments – built upon a structured framework that supports identification and measurement of how their investments would achieve the intended outcome and impact. It was the first to define the criteria for projects eligible for a green bond. 

The issuance of the first green bond marked a significant milestone in the global sustainable development journey – strengthening the business case for environmental sustainability, particularly in shifting investors’ focus and providing a refreshed perspective – in considering green investment opportunities for profitable returns.