BEYOND ADDITIONALITY: A PRAGMATIC APPROACH TO GREEN BONDS

As the green bond market approaches its twentieth anniversary, it’s timely to reflect not just on the growth of the market, but on the evolving narrative around green finance. The sector has matured from a niche innovation into a cornerstone of sustainable finance, and one question continues to dominate: should green bonds be judged by their additionality? In a world of evolving reporting regimes, regulatory scrutiny, and practical financing constraints, it may be time to rethink whether additionality should remain the yardstick for credibility.

Please read our analysis prepared by Credit & ESG Analyst, Bushra Mumin below.