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Green bond spreads tighten as use-of-proceeds scrutiny intensifies

Investors are rewarding issuers with credible transition plans while pricing in reputational risk for weaker frameworks.

By Marcus Feld · 19 August 2026 · 4 min read

Green bond spreads tighten as use-of-proceeds scrutiny intensifies

Labelled issuance has recovered, but the market is no longer treating the label itself as a differentiator.

Analysts point to a widening gap between issuers with independently verified transition plans and those relying on project-level reporting alone.

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