Green bonds and sustainability-linked loans (SLLs) are the two main instruments for financingindustrial emission reductions. This paper compares them using 2024–2026 market data, a BIS study, andacademic research. Green bonds reduce Scope 1 emissions by 21% within one year of issuance [1]. Studiesshow no average emission improvement for SLLs [9]. SLL issuance peaked at USD 158 billion in Q4 2024 andthen declined sharply, while green bonds reached USD 683 billion in the first nine months of 2025 [4]. A newerinstrument, transition bonds, increased from USD 21 billion in 2024 to a forecasted USD 40 billion in 2026 [2].Green bonds are effective but inflexible. SLLs are flexible but lack credibility unless KPIs are strict and verified.Policy measures should address verification gaps.