Through the development and analysis of the market of socially responsible investments it can be noticed that this area has devoted a lot of attention to history. In the market of socially responsible investments, there are innovative structures of financial instruments such as green bonds. Funds collected by issuing green bonds are intended to invest in socially responsible projects and to finance long-term sustainable projects or projects aimed at environmental protection. As green bonds first appeared in 2007, their market started to develop more strongly recently, there are unresolved issues of terminology and regulation, as well as other barriers that prevent market participants from entering the green bond market as well as its development. The paper analyzes the green bond market based on which a conclusion is drawn on the trends present in the market, its participants, dominant markets, currencies and other characteristics of this market. In the Republic of Croatia, because of the relative lack of knowledge of the concept of socially responsible investments, as well as the term of green bonds, we can only talk about the possibilities and assumptions of applying green bonds. Since 2013, the Republic of Croatia has been a member of the European Union and has adopted and harmonized environmental legislation during the accession period, but its implementation today is one of the biggest challenges for significant investment in environmental infrastructure. Needed substantial funds for financing green projects indicate the need for green bonds. There is insufficient development in the Republic of Croatia of financial products offer to finance green projects, and the role of the capital market in the financial system is small. The purpose of the paper is to explore the possibilities and barriers of green bonds to finance environmentally and socially responsible investments in the Republic of Croatia and show the point of the importance of bonds in creating long-term value for the community. Based on domestic and foreign reports, the paper analyses the market of socially responsible investments as well as the green bond market and the possibilities and assumptions for applying green bonds in the Republic of Croatia.