Current Trends in the Green Bond Market

Abstract

AbstractPurpose: The purpose of the article is to conduct a comprehensive study of current trends in the development of the global green bond market, to identify the features of investment in green bonds in the conditions of COVID-19. Design/methodology/approach: The issues of sustainable development and green financing are an urgent agenda today. The key mechanism for solving these issues is placing green bonds on the financial market. Green bonds are an innovative method of financing targeted environmental projects. The theoretical basis of sustainable development is the concept of a green economy, which explains the correlation between economic growth and the state of the environment. At the same time, forming a green economic system is impossible without a stable system of green financing, where one of the most effective tools is the issuance of these bonds. Green bonds will solve both the current problems associated with the coronavirus pandemic and the global challenges of sustainable development and environmental protection. The capacity of the international market of green bonds is still relatively small, but, according to experts, it is very promising. At the same time, the analysis of further prospects for its development requires a more detailed study. For the research, the author used methods of classification and comparison and analysis of statistical data. Findings: The article analyzes the place of green bonds in the market of socially responsible investments. The author considers the geographical aspect of the issue and placement of green bonds and analyzes the monetary and financial features of the issue mechanism of green bonds. The article examines the trend of development of corporate and sovereign debt in the format of green bonds and examines states’ restorative measures for the development of the green bond market. Originality/value: The author concluded that the green bond market is a fast-growing segment of the debt financing market. In addition, significant amounts of liquidity are concentrated in the developed green bond markets, the geography of market development is expanding, and the volume of green bond issues is growing. The states provide vital support for the development of this segment of the debt financing market.KeywordsGreen financeGreen bondsInvestmentsGreen bond marketCOVID-19JEL ClassificationG23O16