Green Bonds for Financing Climate Resilient WASH Development
November 2025
Municipal green bonds offer promising opportunities for mobilising sustainable finance. However, their growth is constrained by challenges such as high issuance costs, limited investor awareness, narrow “greenium” margins, and weak institutional capacity. This paper underscores the importance of policy reforms, tax incentives, and greater transparency to expand municipal green bond markets. It examines the evolving landscape of green and municipal bonds, identifies key financial and administrative challenges, and proposes opportunities for policy and institutional innovation.
