Financing the transition to a green economy: their word is their (green) bond?
Responding to climate change involves the implementation of initiatives that require significant upfront capital investment. At a time when bank lending is squeezed, green bonds offer an alternative financing for initiatives with an environmental goal. Lately, the Ile-de-France Region’s issuance of environmentally and socially responsible bonds on March 20th 2012 demonstrates that an increasing number of players are taking interest in this tool. But green bonds are not, however, the panacea to access to finance issues that mainly depend on the bond issuer’s characteristics.