In 2007, the European Investment Bank issued its first green bond, a EUR 600 million equity index-linked security, the proceeds of which were used to fund renewable energy and energy efficiency projects. A year later, the World Bank followed suit, and by 2017, over US$155 billion worth of public and corporate green bonds had been issued, paving the way for the Seychelles government to issue the first ever “blue bond” last year, a $15 million bond to fund marine protection and sustainable fisheries

The success of these instruments reflects the fact...