Dive Brief:

• A group of investment banks Monday announced their support for a set of principles for green bonds, a growing investment avenue for projects with environmental benefits.
• The green bond principles are designed to be broadly used by the market. The principles give bond issuers guidance on launching a green bond; they ensure that investors have the information needed to evaluate the environmental impact of the green bond investments; and, the principle's standard disclosures will help underwriters by facilitating transactions, according to Ceres.
• The banks expect to name an independent third party to help information get exchanged between issuers, investors, underwriters and other stakeholders.

Dive Insight:

The green bond market is growing quickly, with about $10 billion in bond issuances last year, according to Reuters. Bank of America issued a $500 million green bond to fund renewable and efficiency projects in December.

The green bond principles issued this week will provide greater certainty to the market, which could increase financing opportunities for renewables and efficiency projects.