Green bonds are a type of fixed-income financial instrument specifically designed to fund projects that have positive environmental impacts. These projects can include renewable energy, energy efficiency, clean transportation, and sustainable water management. Investors purchase green bonds to support these initiatives while earning a return on their investment. The proceeds from green bonds are used exclusively for environmentally friendly projects, making them an attractive option for socially responsible investors. Organizations, governments, and corporations issue green bonds to raise capital, and they are often certified by third-party organizations to ensure that the funds are used appropriately for green projects.