engleski

Green bonds

Green bonds are relatively new financial tool issued for the purpose of financing environmentally friendly or socially responsible projects: renewables, water, energy efficiency, bioenergy, and low-carbon transport (Campiglio, 2016). According to Banga (2019), issuing of green bonds is important for investors and policy makers. The fundamental disadvantage of green bonds from the point of view of investors, is the underdevelopment of the market green bonds and accordingly lower liquidity (Maltais & Nykvist, 2020).The green bond market was created by the initiative of multilateral banks that encouraged market development to support the process of financing green and socially responsible projects. Climate Awareness Bond is the first green bond issued in 2007 from the European Investment Bank worth € 600 million. Next year, in 2008, the World Bank began selling green bonds by issuing $ 300 million (OECD, 2014). Green bonds come in six different forms as a:Corporate bond, Project bond, Asset-backed security (ABS), Supranational, sub- sovereign and agency (SSA) bond, Municipal bond, and financial sector bond. The objective of this paper is to highlight the characteristics, purpose of the issue and to display the presence of green bonds in the context of climate change that affect the financial sector as a systemic risk.The paper will highlight the prospects for the development of green bonds inthe world, with special emphasis on Europe. It will test the scientific hypothesis of this paper about the role of the state in the formation of the regulatory framework that is indispensable for the further development of the green bond market.

environment, Europe, regulation, capital market

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