Green vs Sustainability-Linked Bonds

The European Central Bank (ECB) made headlines when they committed to funding 30% of their covid stimulus with green bonds. They will also start buying sustainability-linked corporate bonds as part of their quantitative-easing program and accept them as collateral for loans to commercial banks. The green bond market, which was already exploding with little help from the U.S. government and regulators, will double in size with the plans laid out by the ECB.

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