| | | | | Illustration by Emily Sabens/The Washington Post; iStock | | Hello, readers, This month, I bought my first Green Liberty Bond. Financial tools like this give investors like me a "greenium," a small premium to put my dollars to work decarbonizing the economy. Explore one novel way to turn your money greener in this week's Climate Coach column. | |  | | Modeled on the war bonds that raised billions of dollars to fight World War II, my Green Liberty Bond aims to combat climate change — at least in Connecticut. I invested a modest $280 with the Connecticut Green Bank. My money will be rolled into a pool of millions of dollars helping other banks finance thousands of small solar energy systems. | | Like war bonds, Green Liberty Bonds are designed for ordinary citizens. They're easy to buy without a middleman and divvied up in small amounts. Government backing means the risk is low, and the rates are reasonable. | | It's a novel approach that advocates say promises to enlist millions of small investors to fulfill the nation's renewable energy goals. To be sure, my purpose is to explore how these types of bonds work, not provide financial advice. As with any investment, you should carefully look at the bonds and how they fit into your broader financial picture before putting your money in them. One advantage: You can invest as little as $100. | | In my column this week, I go over: What are green bonds? Like other bonds, they are a (relatively) safe way for investors to earn more interest than what a checking or savings account might offer. But they must contractually deliver clear environmental benefits, such as renewable energy or better wastewater treatment. (Beware of greenwashing.) | | How is my Green Liberty Bond different from other climate-friendly investments? Most green bonds are multimillion-dollar securities that companies or governments sell to institutional investors. But this new brand of green bond modeled on war bonds of the past makes it more accessible to smaller retail investors. The benefits flow into investors' own communities. | | How do I buy a green bond? You can't easily buy and sell them like you would stock. But there are more and more green bonds available for the average investor. One place to start is AskSustainable, a foundation-funded project that has catalogued 220 financial products totaling $50 billion, including bonds. | | "Every dollar that can be utilized for the climate is a dollar well spent," says Trenton Allen, CEO of Sustainable Capital Advisors, which created the site. "You could say my $100 doesn't matter, but it matters when we all do it." So my $280 contribution, like the war bonds that inspired it, might eventually amount to something much bigger. Learn more in this week's column. | |  | | And did you know I read all your emails? Be part of the Climate Coach community. Write with column ideas about green Valentine's Day plans, and ways I can make this newsletter better at climatecoach@washpost.com. | | Was this email forwarded to you? Sign up here to get The Climate Coach in your inbox every Tuesday and Thursday. | | See you on Thursday, Michael Coren, Climate Coach | | | | | | | | | |
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