Practical ideas for strengthening Green Bonds accountability

Green bonds have long dominated the labeled debt market as use-of-proceeds instruments, but they raise questions about long-term accountability. Since 2019, Sustainability-Linked Bonds (SLBs) have introduced a new approach: tying borrowing costs to measurable targets. SLBs have made sustainability goals more visible and imposed real financial consequences for missing them, but they remain complex to design for meaningful impact. This note presents practical ideas to improve green bonds’ long-term accountability, with an emphasis on leveraging exchange oversight.