<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>As the investor base committed to financing sustainable companies in an attempt to combat the climate crisis expands, green financial products have become more attractive to issuers, corporate and sovereign alike. As a result, the EU is attempting to create favourable market conditions which mobilise the allocation of private capital for investments that reduce the contribution to climate change. As part of the EU Commission’s Action Plan for Sustainable Finance, it intends to create Green Bond Standards which aim to support the transition to greener securities investments. As a foundation, we provide an overview of the green bond market development. We then consider investment challenges such as incentivisation and transparency and discuss whether the Green Bond Standards shall likely resolve these issues. Furthermore, we confer that enforceability of current green securities regulations is weak to non-existent and propose possible policy approaches which address these issues.</p>
</abstract>

As the investor base committed to financing sustainable companies in an attempt to combat the climate crisis expands, green financial products have become more attractive to issuers, corporate and sovereign alike. As a result, the EU is attempting to create favourable market conditions which mobilise the allocation of private capital for investments that reduce the contribution to climate change. As part of the EU Commission’s Action Plan for Sustainable Finance, it intends to create Green Bond Standards which aim to support the transition to greener securities investments. As a foundation, we provide an overview of the green bond market development. We then consider investment challenges such as incentivisation and transparency and discuss whether the Green Bond Standards shall likely resolve these issues. Furthermore, we confer that enforceability of current green securities regulations is weak to non-existent and propose possible policy approaches which address these issues.

Green Bonds: Between economic incentives and eco-change

Member of the Club of Rome (EU Chapter) Queen Mary University of London

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Green Bonds: Between economic incentives and eco-change"}

As the investor base committed to financing sustainable companies in an attempt to combat the climate crisis expands, green financial products have become more...

Green Bonds: Between economic incentives and eco-change

Published Online: Jul 27, 2020

Page range: 236 - 245

DOI: https://doi.org/10.2478/picbe-2020-0022

Keywords
green bonds, EU Commission, sustainable finance, climate change

© 2020 Răzvan Hoinaru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Green Bonds: Between economic incentives and eco-change

Published Online: Jul 27, 2020

Page range: 236 - 245

DOI: https://doi.org/10.2478/picbe-2020-0022

Keywordsgreen bonds, EU Commission, sustainable finance, climate change

© 2020 Răzvan Hoinaru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
green bonds, EU Commission, sustainable finance, climate change