Are sustainability-linked bonds here to stay? Sustainability-linked bonds (SLBs) tie the issuer’s payment obligations to the satisfaction of some environmental benchmark. In principle, this could be good and provide an incentive for bond issuers to set ambitious climate-related goals. In reality, SLBs have proven a bit of a bummer. They set unambitious targets, include dodgy legal terms, and provide for only a trivial increase in payments if the issuer misses its target. Recently, ESG-focused investment also has prompted political backlash by conservative politicians. Are SLBs doomed to fail, or is there hope for them to play a meaningful role in funding a green transition? Kenza Bryan of the Financial Times has written extensively about SLBs and green finance in general and joins us to talk about the state of the market for SLBs, carbon credits, and green finance in general. Producer: Leanna Doty