Municipal Green Bonds in Low-Carbon Financial Markets
If you have not yet been requested to comment on the use of green bonds for financing a particular project of your client, it is likely that sometime soon, you will be. The purpose of this paper, then, is to offer a definition of green bonds that will be useful for local-government attorneys in responding to such queries, and also to provide a few general suggestions as to what may be considered to be uniquely material to any green bond offering documents. This paper begins with a look at the role that green bonds serve within the developing low-carbon financial markets established in response to certain climate-related goals as articulated in the Paris Agreement on climate. Following the discussion of green bonds from this perspective, it is suggested that the value of using green bonds for the local government issuer is that green bonds can further the positive effects of the environmentally-friendly project that is funded by the bonds in way that typical bonds cannot.