Green, Greener, Green Bond

Green, Greener, Green Bond
Author: Hong Hanh Tran
Publisher: GRIN Verlag
Total Pages: 32
Release: 2018-06-05
Genre: Business & Economics
ISBN: 3668717796

Seminar paper from the year 2017 in the subject Business economics - Miscellaneous, grade: 1.3, Brandenburg Technical University Cottbus, language: English, abstract: With the effects of climate change getting obvious in many places around the world, the need for financing green projects is urgent now more than ever. Under these circumstances, green bonds become a new investment instrument to attract capital for sustainability projects. However, the valuation for these assets is vague because it lacks consistency in green bond principles, standard tools and techniques for determining their value.The purpose of this paper is to closely examine the Apple’s first green bond and its comparison to its corporate and US Treasuries bond.

The Need for Green Covenants. Regulating the Green Bond Market

The Need for Green Covenants. Regulating the Green Bond Market
Author: Markus Hoffmann
Publisher: GRIN Verlag
Total Pages: 42
Release: 2016-07-04
Genre: Law
ISBN: 3668251967

Master's Thesis from the year 2015 in the subject Law - Miscellaneous, grade: B, London School of Economics (Department of Law), course: Environmental Law, language: English, abstract: Green Bonds are a novel form of long term debt financing instruments enabling continued and sustainable economic growth in a finite physical world. The market for green bonds or Climate Bonds comprises of debt instruments, the proceeds of which are Earmarked for use in environmentally friendly projects. Introduced by the European Investment Bank (EIB) in 2007, the market for green bonds has been growing rapidly, reaching the record volume of USD 36.6 billion in 2014. Rapidly growing markets offer a myriad of opportunities for investors, but those opportunities come with certain risks attached. The risk addressed by this paper is a twofold one. Firstly, there is a risk to the environment if the proceeds of earmarked bonds are used for projects that do not actually benefit the environment. Secondly, there is a legal and financial risk to bondholders that arises when issuers of green bonds use funds for purposes other than those set out in the bond indenture. There are two steps that need to be taken in order to address these risks at the same time. First, a uniform standard of what defines a green bond or a specified range of Shades of Green has to be found and implemented. Second, a green bond needs to state explicitly, in its indenture, what purposes the funds will be used for and of what shade of green those purposes are, in order to empower bondholders to take legal action if covenants are broken. These clauses will be referred to as Green Covenants. This paper will start by briefly setting out the threat posed by climate change before continuing to introduce green bonds, explaining how they operate and why they will become part of the solution to climate change. Four varieties of green bonds, issued by four very different entities, will then be examined and it will be shown that there are certain shortcomings they all have in common. This paper goes on by suggesting that these shortcomings can be addressed by introducing stricter and, most importantly, legally enforceable covenants that determine what proceeds of green bonds can be used for. This will be proven by comparing instruments of English Law and United States (US) Federal Law that are currently available to bondholders, with powers a stronger set of covenants will make available to bondholders in the future.

How Green are Green Debt Issuers?

How Green are Green Debt Issuers?
Author: Jochen Schmittmann
Publisher: International Monetary Fund
Total Pages: 30
Release: 2021-07-23
Genre: Business & Economics
ISBN: 1513592998

Green debt markets are rapidly growing while product design and standards are evolving. Many policymakers and investors view green debt as an important component in the policy mix to achieve the transition to a low carbon economy and ensure the pricing of climate risks. Our analysis contributes to the nascent literature on the environmental impact of green debt by documenting the CO2 emission intensity of corporate green debt issuers. We find lower emission intensities for green bond issuers relative to other firms, but no difference for green loan and sustainability-linked loan borrowers. Green bond, green loan, and sustainability-linked loan borrowers lower their emission intensity over time at a faster rate than other firms.

Green Metaverse for Greener Economies

Green Metaverse for Greener Economies
Author: Sukanta Kumar Baral
Publisher: CRC Press
Total Pages: 391
Release: 2024-06-28
Genre: Computers
ISBN: 1040046584

This book reviews Metaverse, the possibilities and difficulties of sustainable development, and policy suggestions, especially within the context of the 2030 Agenda. Green Metaverse for Greener Economies examines how the metaverse holds the potential to significantly reduce carbon emissions, whether through the replacement of physical goods with digital ones, the substitution of in-person interactions with virtual ones, or the creation of digital twins that will aid in the optimization of the physical world, from the planet to specific individuals thereby leading to sustainable world. The book includes a number of case studies, exploratory studies utilizing quantitative analysis, scientific studies, and qualitative studies to demonstrate how metaverse leading innovation and technology aids to achieve business sustainability in the emerging economies while also having an impact on the global economy (SDGs). This book will be useful for engineers, managers, and policy makers working on improving sustainability and reducing their carbon emissions through more energy-efficient processes. Features: Shares essential policy tools on innovation and technology for sustainable computing. Reviews metaverse, the possibilities and difficulties of sustainable development, and policy suggestions, especially within the context of the 2030 Agenda. Explores green technology concept, difficulties, and challenges ahead. Includes several case studies, exploratory studies utilizing quantitative analysis, scientific studies, and qualitative studies to demonstrate how metaverse leading innovation. Explores innovative technology in sustainable society like digital transformational, metaverse in business management, and innovative technology in healthcare.

The Sustainable Fintech Revolution: Building a Greener Future for Finance

The Sustainable Fintech Revolution: Building a Greener Future for Finance
Author: Singh, Kuldeep
Publisher: IGI Global
Total Pages: 378
Release: 2023-09-12
Genre: Business & Economics
ISBN:

The fintech industry has transformed the way individuals handle their finances, conduct transactions, and access financial services over the past decade. With increased efficiency and cost-effectiveness, fintech has emerged as one of the most profitable industries globally. However, the growth of fintech also presents an opportunity to promote sustainability and social responsibility in the financial sector. Fintech can contribute to financial inclusion, reduce economic disparities, and advance sustainable development goals through the integration of technology. The Sustainable Fintech Revolution: Building a Greener Future for Finance explores how fintech can be used to promote sustainability in the financial industry. This book provides a comprehensive overview of the fintech ecosystem and its potential for advancing sustainability goals, including case studies of companies that have integrated sustainability into their business models. It also offers insights and recommendations for policymakers, regulators, financial institutions, and fintech companies on how they can promote sustainability in the financial industry. This book is ideal for academics and researchers in finance, technology, sustainability, and development studies, as well as practitioners in the fintech industry, policymakers and regulators, and non-governmental organizations (NGOs) working on sustainable finance and development issues.

Green Bonds

Green Bonds
Author: Madurika Nanayakkara
Publisher:
Total Pages: 672
Release: 2018
Genre: Bonds
ISBN:

"This study was motivated by the urgent requirement to scale up the global green bond (GB) market to meet the trillion-dollar financial requirement of environmental resilience projects worldwide, and by the absence of prior scientific investigations to determine solutions to the GB market's problems from different perspectives. Three empirical studies were conducted to provide a holistic view of the GB market. The first study investigated the perception gaps of different stakeholders in the GB market in terms of assessing the 'greenness' of projects funded through GBs, investors' expectations of GB investments, and the factors hindering the growth of the GB market. A qualitative method was employed with document review, followed by interviews, a questionnaire survey and peer debriefing. The study found that both the demand and supply sides of the GB market are inadequate to meet the world's green investment requirements. The main obstacles hindering the market growth are fear for greenwashing, definitions that lack clarity, the absence of large-scale issues, and the high costs associated with complex reporting processes and third-party certifications. The second study assessed the influence of GB principles on investor demand for GBs, using global GBs issued for the period 2007 to 2016. Bid-ask spread and yield spread were used to measure the investor demand. The results indicated a significant positive relationship between the degree of compliance and investor demand. The third study compared the credit spreads of corporate GBs and conventional bonds, measured by option-adjusted spread daily data for the period 2016 to 2017 worldwide. Hybrid method of panel data regression was employed to analyse the data, and found that GBs are traded at a premium in the world market, compared with conventional bonds. This thesis suggests several policy implications based on the findings of these studies to scale up the GB market as a new source of financing." -- Abstract.

Transforming Green Bond Markets

Transforming Green Bond Markets
Author: Juan Antonio Ketterer
Publisher: Inter-American Development Bank
Total Pages: 36
Release: 2019-09-27
Genre: Technology & Engineering
ISBN:

Despite exhibiting remarkable growth, the green bond market still represents less than 1 percent of the global bond market. This paper identifies two challenges that might slow the adoption of green bonds and presents a menu of responses that policymakers, regulators, and public financial institutions can use to offset these challenges. Specifically, it explores two key dimensions: (i) the risk profile of the green bond instrument and (ii) the transaction costs associated with issuance of and reporting on green bonds. New approaches to risk design and technology-based approaches are essential to untap the potential of green bond markets, particularly in Latin America and the Caribbean and other developing regions. The incorporation of financial mechanisms such as covered bonds and guarantees can adequately address the risk of the issues, making the market more attractive for investors. Enhanced regulation and education and leveraging efficiencies of new technologies such as distributed ledger technologies can substantially reduce monitoring and reporting costs, while improving transparency in the use of proceeds and market integrity.

The Market of Green Bonds. An International Analysis of Public and Private Issuers in the Green Bond Market

The Market of Green Bonds. An International Analysis of Public and Private Issuers in the Green Bond Market
Author: Tilman Baunach
Publisher: GRIN Verlag
Total Pages: 57
Release: 2020-10-29
Genre: Business & Economics
ISBN: 3346286002

Bachelor Thesis from the year 2020 in the subject Economics - Finance, grade: 1,7, Wiesbaden University of Applied Sciences (Wiesbaden Business School), course: Finance, language: English, abstract: This thesis aims to analyse the Green Bond market and its protagonists in order to assess its long-term potential in financing the necessary changes on earth. To ensure that readers without profound financial literacy can comprehend the paper, the second chapter gives an overview of the debt capital market instrument "bonds" and its main aspects. The tools used to assess the protagonists' international competitiveness as part of the international analysis are introduced here as well. The third part deals with "Green Bonds" in particular. It consists of important general information and a widespread market overview. Section four comprises the international market and competitiveness analyses of the main market players: the EU, United States and China (with Hong Kong SAR). A future prospect for the Green Bond market, based on the outcomes of a brief "expert interview" the author distributed among professionals working in the financial world, is given in chapter five. To round off the thesis, the sixth and final chapter forms the conclusion that draws a bow back to the introduction.

Detailed Guidance for Issuing Green Bonds in Developing Countries

Detailed Guidance for Issuing Green Bonds in Developing Countries
Author: Asian Development Bank
Publisher:
Total Pages: 50
Release: 2021-12-22
Genre:
ISBN: 9789292692841

This publication provides guidance for bond issuers and their advisors on the process and key considerations for a successful green bond issuance. Demand for green bonds and other sustainable finance products is increasing rapidly, and issuers are seeing an opportunity to be part of the green bond market. This publication covers all the steps required to follow best practices in labeling bonds as green. It includes examples, links to further details, and key resources for green bond issuers and their deal teams.

Greening the Bond Market

Greening the Bond Market
Author: David Ramos Muñoz
Publisher: Springer Nature
Total Pages: 320
Release: 2023-10-19
Genre: Business & Economics
ISBN: 3031386922

Green bond issuance has surged in recent years in response to growing investor appetite and borrowers' needs as they embark on the sustainability transition. The EU leads the way, with over 40% of all sustainable bond issuances denominated in euro. The EU’s 'Regulation on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and sustainability-linked bonds’ is the first comprehensive legislative text covering such issuance, and a cornerstone of EU’s Sustainable Finance strategy. This book explores in an interdisciplinary way the challenges and opportunities of green bonds and sustainable finance from a legal, regulatory and economic perspectives. First, it analyses green bonds as a new financial instrument in the context of the existing capital markets law. Second, it studies green bond impact on the market and on investor protection. Third, it assesses green bonds’ relevance for prudential supervision and central banking. The variety of viewpoints ensures a highly comprehensive analysis of green bonds’ impact in a European and global context.