Green Bonds has arisen out of the concept of “green finance” to channelise savings towards green initiatives to make more sustainable, rewarding and positive impact on the environment. Green Finance is defined as financing investments that deliver environmental benefits in the broader context of environmentally sustainable development. It is expected that green bond investment in a single year could reach $1 trillion milestone for the first time by Q4 2022. Environmental issues are becoming a serious cause of worry for the world and its people. Investments in Green Bonds could relate to environmental benefits which include, reductions in air, water and land pollution, reductions in greenhouse gas emissions and improved energy efficiency. Threat relating to climate change is one of the biggest threats being faced by the humanity. The root cause of green finance is to mitigate the impact of climate change, pollution and depletion of natural capital that threatens a country’s ability to be competitive and productive. This new emerging financial instrument for green economy is not technically different but sets new conditions for making responsible investment. Green bonds are the bonds issued by the enterprise for investments in the field of alternative energy, environmentally friendly modes of transport, and effectively projects, which meet the criteria of sustainable development. Globally, the first green bond was issued in 2007 by the European Investment Bank, lending arm of EU. India entered the green bond market for the first time in 2015 with the bond issue by YES Bank for investment in renewable and clean energy projects. This study focuses on a comparative study of green bonds issued by various countries including India and analyses the investments made in this sector.