Responsible Investing In a Traditional Asset Class

Potential benefits and risks of investing in green bonds in the municipal market.

Franklin Templeton Fixed Income Group


In the municipal bond market, the issuance of green bonds—which are bonds issued to help fund environmentally beneficial projects—has provided an attractive solution for investors interested in socially responsible investments while also receiving the tax-exempt income benefit municipal bonds offer. In this primer, we seek to provide:

  • An overview on green bonds in the muni market (how and why they are issued) 
  • Potential benefits and risk considerations
  • Why we believe an active approach is valuable when selecting green bonds