85 - Green loan

Finance dedicated environmental projects

Power of green financing ♻️

Following our exploration of sustainability-linked loans (SLLs) and their role in aligning financing with broader ESG goals, today we’re diving into green loans—a more targeted but equally impactful financial tool.

Green loans are purpose-driven, exclusively funding projects that deliver measurable environmental benefits.

Unlike SLLs, which focus on performance metrics across a company’s operations, green loans channel capital directly into projects that combat climate change, promote renewable energy, and enhance ecological sustainability.

A stacked bar chart showing the issuance of green bonds, sustainability bonds, and green loans from 2013 to 2021, measured in USD billions. The chart highlights a significant increase in total issuance over time, with green bonds dominating the market, followed by sustainability bonds and green loans. The data shows rapid growth particularly from 2019 onwards. Source: BloombergNEF, Bloomberg LP. Sustainability-linked instruments are not included.

Issuance of Green Bonds, Sustainability Bonds, and Green Loans Over Time

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