Green bonds channel investor capital to climate projects only after independent verification confirms the proceeds are genuinely green.
flow_i = capital_i * verified_i
Green premium ~ demand / supply
- Investors/issuers — capital sources and green-bond issuers forming the market graph.
- Market connectivity — how densely investors are linked to potential green projects.
- Capital inflow rate — pace of new investment entering the green-bond market.
- Verification threshold — the standard (e.g. Green Bond Principles) a project must clear to receive funding.
Trillions in labelled green debt now fund renewable and resilience infrastructure — but only when third-party verification prevents greenwashing.