Green Bonds – Same Old Debt, New Green Wrapper

Green bonds are having a moment. They look like ordinary bonds, walk like ordinary bonds, and default like ordinary bonds – but they come with an environmental promise stitched into the marketing. Governments love them. Banks issue them. Investors queue up to buy them. And everyone else wonders whether this is genuine financial innovation or just a regular bond with a recycled label.

In this article, we’ll take a cheerful meander through the world of green bonds under English law. We’ll explain what they are, how they work, and what legal frameworks (if any) underpin them. We’ll lift the lid on why they’re being taken increasingly seriously by both investors and regulators, and glance at a couple of real-world examples to show how green bonds are being used – not just talked about.