Which of the following is a source of green financing?

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Green bonds are specifically designed to fund projects that have positive environmental impacts, such as renewable energy, energy efficiency, or sustainable agriculture. They represent a form of debt where the proceeds are exclusively used for green projects, thereby encouraging investment in sustainability and helping to combat climate change. This targeted approach to financing environmental initiatives distinguishes green bonds from other financial instruments.

In contrast, conventional loans, personal loans, and corporate bonds do not inherently focus on environmental benefits. While they may be used for a variety of purposes, including potentially funding green projects, they do not have the same commitment to sustainability that green bonds carry with their specific framework and accountability standards aimed at ensuring that the funds are channeled toward environmentally friendly outcomes.

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