Financing the Climate Change through Green (Climate Sustainable) Bonds

摘要

It goes beyond doubt, that a move towards a more globally sustainable economy is only possible with increased capital infusion into projects that are environment friendly. Governments across continents have committed under the 2015 Paris Agreement that calls for arresting the increase in global temperature below 2 degree Celsius [1]. This demands significant capital to fund these projects. One possible investment avenue is Climate (Green) Bonds. On one hand investors globally are encouraged to re-model there business beyond financial values and look into environmental values [2]. On the other hand, many investors shy away from such capital commitments due to lack of universal policy framework and guidelines pertaining to these bonds. This paper looks into how climate bonds (green bonds) can help in bridging the climate finance gap, an important pillar of United Nation's (UN) Global Sustainable Development plan and provides a suggestive framework to overcome the barriers that hinders the development of a robust climate bonds market in emerging markets.