Green bonds involve the issuing entity guaranteeing to repay the bond over a certain period of time, plus either a fixed or variable rate of return. They can be asset backed securities 43 (see Breeze Bonds Case Study – Box 3) tied to specific green infrastructure projects or plain vanilla “treasury-style” bonds issued to raise capital that will be allocated across a portfolio of green projects (such as the World Bank‟s issuances). 44 Some green bonds utilised structured note mechanisms 45 (see following section on Structured Green Products), with payments linked to inflation or other underlying derivatives. .
