Legal Consequences of Climate Change on Redefi ning the Capital Market – Can Capital Market Contribute to Transition to a Low Carbon Economy?

Abstract

Climate change is one of the main initiators of changes in the legal, regulatory, economic, social and environmental systems of states, given that the consequences of changing natural conditions affect global, regional and national economic development, as well as quality of life. Can capital market contribute to climate change mitigation, by transition to a low carbon economy? By applying the normative and comparative method, the author points out how the legal and regulatory framework can encourage capital markets to play a key role in raising and redirecting free capital in order to solve the problem of climate change. In this regard, climate (green) financial instruments created for investing in environmental protection projects and climate change mitigation are analyzed. Considering the tendencies in the global capital market, the author concluded that there are numerous legal obstacles that impede the more intensive contribution of the capital market in the fight against climate change.