My recent suggestion that fund managers wanted the government to issue green bonds in response to investor demand received short shrift from someone who, I think, thought he knew how markets worked. His claim was that such bond issues were not necessary, or desirable, despite my agreeing that they were.
I am, then, slightly pleased to note that the FT is firmly on my side,
May 21 2019 at 1:41 pm
These aren’t “Green” bonds as such. They are issued by the Dutch government, and repaid by the Dutch government – not through the proceeds of “Green” investments.
The only thing that makes these bonds “Green” is that the money raised will be used for environmentally friendly projects.
Which is fine, but they are just like any other government bond, where the proceeds could also be used for similar things. The only difference is in the name.
Richard Murphy says:
May 21 2019 at 2:03 pm
And the monitoring
That is quite emphatically not the same