Climate bonds: mobilizing private financing for carbon management

Mathews, John A.; Kidney, Sean

doi:10.4155/cmt.10.15

Cited by 13 publications

(7 citation statements)

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“…Compared with other capital market financing instruments, the history of green bonds in China is relatively short, and related research is not deep. At present, global research on green bonds and their risk premium is focused on summaries and qualitative research [1][2][3][4][5][6]. In recent years, foreign countries have begun to gradually conduct quantitative research on the influencing factors of the green bond risk premium, but the research methods and conclusions have not been unified.…”

Section: Introductionmentioning

confidence: 99%

Research on the Factors Affecting the Risk Premium of China’s Green Bond Issuance

et al. 2019

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Green bonds have both “bond” and “green” attributes and are one of the important financing tools for green financial markets. The green bond risk premium directly reflects the financing cost of bond issuers and the capital gains of investors. A reasonable risk premium is the key to the successful issuance and trading of green bonds. Therefore, this paper studies the factors affecting the risk premium of China’s green bond issuance, aiming to provide a basis for determining a more reasonable risk premium. Based on the primary issuance market of green bonds, this paper takes into account the macro- and microscopic cross-sectional data of green bond issuance and comprehensively considers the main factors affecting the green bond risk premium from macro-influence factors, micro-influence factors, and green attribute factors. An empirical study of the factors affecting the risk premium of China’s green bond issuance was conducted using multivariate statistical regression analysis. The study found that the green attribute factor affecting the risk premium of green bonds is third-party green assessment certification. The bond factors affecting the risk premium of green bond issuance mainly include debt credit rating, issue period, and issue size, all of which affect the risk of green bond issuance. The issuer factors affecting the risk premium of green bonds include debt principal, nature of property rights, and return on net assets. The macro factor affecting the risk premium of green bonds is the current market interest rate.

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Section: Introductionmentioning

confidence: 99%

Research on the Factors Affecting the Risk Premium of China’s Green Bond Issuance

et al. 2019

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“…Спочатку проблематика змін клімату розглядалася переважно як тематика для наукових досліджень, однак з 1990-х років завдання у сфері екології та протидії змінам клімату стали предметом рекомендацій відповідної політики з боку міжнародних організацій до національних урядів. У 1992 р. в рамках Світового саміту ООН було прийнято Концепцію сталого розвитку 2 , основна ідея якої полягала в поєднанні економічного розвитку із збереженням природи і соціальною справедливістю, у забезпеченні умов для всебічного розвитку людини, включаючи поточні й майбутні покоління. У 2015 р. ООН ухвалила Цілі сталого розвитку 3 -програму, яка включає 17 цілей і 169 підцілей на період до 2030 р. Дані цілі стосуються таких напрямів діяльності, як збереження клімату, боротьба з бідністю, забезпечення якості освіти та ін.…”

Section: оа щербаковаunclassified

Роль Зелених Облігацій У Фінансуванні Сталого Розвитку

ЩЕРБАКОВА

2024

ЕУ

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The active development of green bond markets is related to the fulfillment of climate transition tasks in accordance with the UN Sustainable Development Goals in terms of achieving climate neutrality. The green bond market can provide Ukraine with access to global financial resources for the purposes of post-war recovery and structural transformation of the national economy at a qualitatively new technological level based on the principles of sustainable development. Author generalises that scientific research on green bond markets are focused on the issues of assessing their impact on sustainable development, standardization of green bonds, assessment of the premium for the risk of such bonds, the impact of green bond issuance on the development of stock markets, specifying the prerequisites for the effective development of green bond markets. The types of green bonds are systematized by the type of collateral against the issuer's assets. The recommendations of international organizations on the development of channels for attracting private capital to finance sustainable development projects are summarized. Problem of green bonds standardization in accordance with international principles is emphasized, namely: the purpose of bonds, transparency of the issuer's reporting, the presence of mechanisms for managing the funds involved, evaluation of project results. Author suggests that implementation of such standards facilitates the inflow of investors' funds into targeted projects for sustainable development and allows to control this process. She defines the most problematic areas in the development of the green bond market in Ukraine, which are their standardization, the introduction of financial and non-financial reporting standards related to the disclosure of climate information, the implementation of incentives for green bond issuers and investors, the development of the stock market infrastructure and the diversification of financial instruments, securing the rights of investors, popularization of sustainable recovery ideas in society.

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“…Hence, green bonds have become a popular means to raise private capital to fund climate change initiatives (Mathews & Kidney, 2010) and to gain a "green advantage" (Gianfrate & Peri, 2019).…”

Section: Green Finance and Green Bondsmentioning

confidence: 99%

Interactive effects of brand reputation and ESG on green bond issues: A sustainable development perspective

2022

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This paper shows that brand reputation alone may not be sufficient to help firms successfully issue green bonds and that they may need superior corporate social responsibility performance in the form of high ESG (Environmental, Social, and Governance) scores to unlock the full potential of their brand reputation. Using a sample of 338 international green bond issues across 108 unique firms, we found significant positive effects of ESG disclosure score and its interaction brand reputation on the issuance of green bonds while controlling for other variables, such as fixed effects of industry, region, and time. We also show that it is the S (Social) component of ESG and the interactions of its E (Environmental) and G (Governance) components with brand reputation which drive successful green bond issuance. Besides extending the current research on the impact of brand reputation and ESG on green bonds, these results also have important managerial implications for analysts, fund managers, and firms planning to raise green capital.

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Climate bonds: mobilizing private financing for carbon management

Cited by 13 publications

References 1 publication

Research on the Factors Affecting the Risk Premium of China’s Green Bond Issuance

Research on the Factors Affecting the Risk Premium of China’s Green Bond Issuance

Роль Зелених Облігацій У Фінансуванні Сталого Розвитку

Interactive effects of brand reputation and ESG on green bond issues: A sustainable development perspective

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