Explanation:

Green bonds are similar to any other bonds which are used to raise money from market. But there are some differences such as: the money raised by the issuer of green bonds is used for financing Green projects, or environment- friendly projects. Such projects could be in the areas of renewable energy, clean transportation and sustainable water management. A green bond is a fixed income instrument for the purpose of raising debt capital through markets. The Green Bond principles are voluntary guidelines issued by the International Capital Market Association which states the procedure for certifying a green bond.