In the wake of the Covid-19 pandemic, governments and businesses will focus their attention on rebuilding, including a move to more environmentally sustainable economies. As a result, issuers of all types are using green bonds to finance projects related to environmental initiatives. On a steady upward trajectory over the past few years, green bonds are a growing category of fixed-income securities that raise capital for projects with environmental benefits, such as renewable energy or low-carbon transport. Although they make up only a small fraction of the total global bond market—about 4 per cent—green bonds reached a record high of nearly US$270 billion by the end of 2020. New issuance could reach US$400-$450 billion this year, according to a report by the London-based non-profit Climate Bonds Initiative, which promotes investment in the low-carbon economy. Due to strong demand relative to the wider bond market, green bonds have shown comparatively strong resilience during pandemic-related market volatility.