Project Description:

This research program aims at bridging the knowledge gap on the main challenges and opportunities faced by the green bonds market, namely increasing their financial contribution to the low-carbon transition and improving the environmental integrity of the underlying green finance. It will look closely at both the challenges and opportunities these issues pose and analyze potential solutions. The ultimate objective of this research is to inform market stakeholders and policymakers on different measures that could be put in place in order to maximize the contribution of climate-focused green bonds to the implementation of the Paris Agreement on climate change.

The overarching objective of the research program is to help policymakers and market actors put in place measures to increase the contribution of the green bond market to fostering the low-carbon transition. More specifically, the first study aims at exploring how this contribution could be enhanced if new government-led or market-led support measures were implemented. The second study aims at identifying which monitoring, reporting and verification (MRV) frameworks – both top-down and bottom-up – would be the most appropriate for the green bond market and the underlying green finance.

The research program will thus contribute to current debates related to green bonds as policy instrument and deepening the understanding of the market. The preliminary results (June 2017) and two final reports (Q4 2017) will target policy makers, financial actors and observers, and will be shared to public institutions (including the HLEG on sustainable finance launched by the European Commission) and during the key international events on the Green Bond market.

Partners: Climate Works Foundation

Project timeline: 2017

Publications