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Green bond fad is load of hot air

Beneath all the hype, the reality is less exciting than claimed and the risks more serious than admitted

Green bonds are said to benefit the environment - but it is not that simple
Green bonds are said to benefit the environment - but it is not that simple Photo: Getty Images

An accident waiting to happen. Hungry investors prepared to take a lot on trust. Lack of common product standards combined with lax policing. And banks eager to jump on the latest gravy train.

Sound familiar? The abuse of mortgage-backed securities brought the financial system to its knees. Yet the description also fits the latest fad to sweep the City: green bonds.

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