ELI5: Explain Like I'm 5

Green bond

A green bond is like a special kind of loan that helps the environment. It's like when you borrow money from a friend to buy something good, like a toy that you can share with others. But instead of buying toys, green bonds can be used to do things like building wind turbines or solar panels, which make clean energy that doesn't hurt the Earth.

People who lend money through green bonds want to help the planet, and they get paid back just like a regular loan. The difference is that the money they invested goes towards eco-friendly projects. So when you hear about green bonds, you can think of them as a way to help the Earth and make it a better place.
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