Green Bond: A Systematic Literature Review for Future Research Agendas

Abstract

Green bonds (or climate bonds) are one of the most used sustainable investment instruments, and under the Paris Climate Agreement of 2015, the climate bond market is expected to thrive in the near future. Green bonds are gaining increasing popularity between environmentally responsible investors, as well as investors who “simply” attempt to benefit from portfolio diversification, including green issuances, that are close to other fixed bonds. This paper aims to take advantage of previous literature contributions on the green bond market to indicate the way forward for future research. Herein, through a systematic literature review on the green bond market, our ultimate goal is to provide investors, main markets actors, and policymakers with some helpful insight on the role of environmental investments in reshaping the financial markets and fostering the sustainability of the economy.

Corporate green Sukuk issuance for sustainable financing in Indonesia

“…The results show that green Sukuk, in addition to reducing the tax budget, helps to overcome many environmental problems and improve water quality. Brahim (2018) The use of green bonds as a financing instrument to achieve the goals of the Paris Agreement was analyzed by Cortellini and Panetta (2021). Corporate green bonds effectively increase the company's environmental footprint and performance.…”

Green Economic Development as the Framework for Green Finance and Green Investment

“…It was declared long ago that the promotion of the socio-economic transition from brown to green investments requires the enhancement of economic performance, stocks of renewable resources, increasing global wealth and reducing environmental risks (UNEP, 2011 The global financing system is converging into a green economic system attracting new climateconcerned investors and shifting global financial flows to climate-aligned projects (Cortellini, Panetta, 2021). International debates on the climate change and the financial crisis conclude that policies uphold the environmental and economic recovery (Bina, La Camera, 2011).…”

“…Od dawna wiadomo, że wspieranie przejścia społeczno-gospodarczego od inwestycji "brązowych" do zielonych wymaga poprawy wyników ekonomicznych, zgromadzenia zapasów zasobów odnawialnych, zwiększenia światowego bogactwa i zniwelowania zagrożeń środowiskowych (UNEP, 2011). Zielona gospodarka oferuje różne propozycje w odpowiedzi na globalne kryzysy finansowe, łączące perspektywy ekologiczne i zarządzanie w okresie przejściowym ( Globalny system finansowania przekształca się w zielony system gospodarczy, który przyciąga nowych inwestorów, którym leżą na sercu kwestie klimatyczne, i przekierowuje globalne przepływy finansowe do projektów dostosowanych do klimatu (Cortellini, Panetta, 2021). Z międzynarodowych dyskusji na temat zmian klimatycznych i kryzysu finansowego wynika, że polityka ma wspierać zarówno odbudowę środowiska, jak i ożywienie gospodarcze (Bina, La Camera, 2011).…”

Sovereign Climate Debt Instruments

“…Sovereign green bonds are a recent phenomenon, starting in 2016. The literature often cites the bond issued by the European Investment Bank in 2007 as the first green bond (Cortellini and Panetta 2021;OECD 2021). 4 Since 2007, international organizations, municipalities, and private sectors have increased the issuance.…”