While examining use of proceeds remains a key element of analyzing green bonds, we highlight four additional metrics to assess these bonds and their issuers in a more quantitative way. They offer a new set of lenses with which to tackle the analysis.

The rapid growth in green bond issuance since 2015, along with diversification in types and regions of issuers, has resulted in substantial expansion of the Bloomberg Barclays MSCI Green Bond Index. In this paper, we examine the key trends facing the green bond market by analyzing the evolving composition of the index since its inception. We also examine key external trends – emerging regional standards, social and sustainability offshoots, innovative funding instruments – that may broaden...

As the green-bond market matures, it is developing offshoots. The types of projects financed, as well as the emergence of innovative types of bonds and loans linked to the ESG targets, is growing. These initiatives may broaden the market for green investment options.