Green bonds and green gilts are use-of-proceeds debt instruments. This hub explains how they work, how they differ from funds and savings products, and what risks investors should understand before relying on the green label.
Financial information only
This hub is for education only. It is not investment advice, tax advice, a recommendation, or a personal financial promotion. Bonds can fall in value and credit risk, duration risk and inflation risk matter.
Green bonds reading path
| Guide | Best for | What it explains |
|---|---|---|
| What are green bonds? | Beginners | Use of proceeds, verification, issuers, greenium and greenwashing risk. |
| Green gilts UK | UK fixed-income readers | How UK green government bonds work and how they differ from savings bonds. |
| Green bonds vs ESG funds | Product comparison readers | Debt instruments versus diversified ESG (environmental, social and governance) fund exposure. |
| Green savings accounts and cash ISAs | Cash savers | Why savings products and tradable bonds should not be treated as the same thing. |
Questions to ask
- Who is the issuer and what is the credit risk?
- What eligible green categories are financed?
- Is there a second-party opinion or external verification?
- How sensitive is the bond to interest-rate changes?
- Does the product sit inside an ISA (individual savings account), SIPP (self-invested personal pension), fund or direct holding?
Bottom line
Green bonds can make the use of capital clearer, but they do not remove bond-market risk. Treat the green framework and the financial instrument as two separate checks.