How Green Are Your Bonds?

Fixed-income investors can make an environmental impact, too.

photo illustration of growth from money
(Image credit: Getty Images)

If you really want to make an environmental impact with your investment dollars, buy green bonds. These securities fund projects that help the environment, delivering measurable outcomes without sacrificing returns you might earn from traditional bonds. And they are growing like wildflowers. Last year, the global market for green bonds—a fixed-income sector that’s just over 10 years old—surpassed the $1 trillion mark, putting it on par with the U.S. high-yield corporate debt market, says Vishal Khanduja, manager of Calvert Green Bond. This year, the green bond market could top $2 trillion.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.