GREEN BONDS AS A FINANCIAL INSTRUMENT FOR ENVIRONMENTAL PROJECTS FUNDING

In the last decade, the idea of sustainable development and sustainable economy is increasingly being discussed on the international forum, uniting governments as well as international and national institutions/organisations in joint initiatives for the environmental protection. Transition to a sust...

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Bibliographic Details
Published in:Unia Europejska.pl 2018-01, Vol.248 (1), p.13-21
Main Authors: Bieliński, Tomasz, Mosionek-Schweda, Magdalena
Format: Article
Language:English
Subjects:
Banking
Bond issues
Bond markets
Capital markets
Case studies
Climate change
Emission standards
Emissions
Environmental protection
Equity financing
Financial institutions
Funding
Global economy
International finance
Investments
Paris Agreement
Social investing
Sustainable development
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Summary:In the last decade, the idea of sustainable development and sustainable economy is increasingly being discussed on the international forum, uniting governments as well as international and national institutions/organisations in joint initiatives for the environmental protection. Transition to a sustainable global economy needs financial sources for investments that provide environmental benefits. Green bonds, together with green loans, are basic financial instruments considered as sources of green projects financing. The green bond market is relatively new, but has rapidly been increasing; however, to maintain this growth, investors' and issuers' confidence in the green bonds credentials is indispensable. Therefore, the guidelines and standards accepted by financial markets and clearly indicating what should be considered as green investment are crucial for further development of the green bond market and the accomplishment of the green finance objectives. The aim of this paper is to analyse the potential of the green bond market to finance the shift towards sustainable economy. By the method of case studies of countries leading in green bond issuance, the paper summarises the best practices that can be implemented in the EU countries to exploit the potential of the green bonds growing market. For better understanding the origin of green bonds, basic theoretical background of green finance is also provided.
ISSN:2085-2694