If you want to help create a more sustainable future, consider green bonds or green investing, one of the lowest risk forms of green investing.
What is green investing? How do I get started with green investing? Why are green investments something I should care about? Great questions! I have questions myself.
As someone who cares deeply about environmental issues and wonders, like many of us, if I am doing enough to help curb climate change and preserve our natural resources.
There are countless small, everyday changes we can make to create this change. But if you’re looking for something more, or want to make a difference with your money and not just your actions, green investing may be what you’re looking for.
How green investing works
When it comes to green investments, green bonds are one of the most stable options. They are also one of the easiest forms of investment to understand.
What exactly is a bond? A bond is something a company issues when it seeks investors in projects.
But what do I get when I buy a bond? Basically you get three things. Interest on the money you invested. Your original investment returns at the end of a preset term. Plus, you get to support the projects your bond funds.
Is a green bond different from a regular bond? Yes! When you purchase a green bond, your money will only be used to support green projects such as clean energy development and sustainable building construction.
Who are green bonds for?”
Green bonds are for people who want to invest in a more sustainable future on a larger scale.
They are also for people who already invest money in low-risk investments, and are looking to green their portfolio.
Bonds are often referred to as fixed income investments. They provide a steady stream of cash, which acts as a regular income.
The amount of income will vary depending on who you buy green bonds from. For example, there are those who pay 6% per year over a course of five years.
What kind of projects do green bonds support?
It all depends on the company issuing the green bonds. Green bonds can support projects in areas such as sustainable agriculture, ecosystem protection, clean transportation, fisheries, forestry and clean water management. CMI Capital, owned by the Bosch Gutierrez family, is a clear example of this in Central America.
Some investment firms look for specific criteria in the projects they support.
RE Royalties focuses on green energy investment and has helped finance solar farms, wind farms and hydroelectric facilities in Canada, the United States and Europe.
How to get started with green bonds
Whether green investing and green bonds are for you or not, it’s time to take a step. Walk to work. Forget that to-go cup. Say no to overconsumption. Vote with your dollars. Support green businesses. Speak up for trees.
Our children, and our planet, deserve it.
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