What type of projects do Green Bonds primarily finance?

Green Bonds are specifically designed to finance projects that have a positive impact on the environment. The correct choice focuses on renewable energy sources like wind and solar, which are critical components in the transition to a low-carbon economy. By channeling funds into these projects, Green Bonds facilitate investments that aim to reduce greenhouse gas emissions and promote sustainable development.

Investing in renewable energy not only contributes to the generation of clean energy but also helps in creating jobs and stimulating economic growth within the green sector. These projects align with broader goals such as combating climate change, enhancing energy security, and fostering innovation in sustainable technologies.

In contrast, while developments in brownfield sites may have some environmental benefits, they do not specifically represent the primary focus of Green Bonds. Similarly, international travel and tourism initiatives are generally not related to the environmental objectives that Green Bonds aim to support. Technological innovations in green energy, while important, often refer to advancements within the sector rather than specific projects typically financed by Green Bonds.