Akademičnij Oglâd (Jun 2023)

RATIONALES FOR EFFICIENT AND EFFECTIVE GREEN FINANCING UNDER EMERGENCY RULES

  • Olena Sova,
  • Lesia Voliak,
  • Viktoriia Khmurova

DOI
https://doi.org/10.32342/2074-5354-2023-2-59-6
Journal volume & issue
Vol. 2, no. 59
pp. 90 – 102

Abstract

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The article is devoted to the current topic of environmental protection through the joint efforts of government and business with the help of innovative schemes for attracting investments in ecological developments. Based on data from international organizations, a thorough study of global trends in the use of green bonds as a financing tool for environmentally important projects has been conducted. The changing climate of our planet requires the adaptation of sustainable development goals to the challenges of our time. And such an effective mechanism is green financing. Green bonds are considered as an impact investing mechanism. The participants in the initiation of the standardization process of green bonds and the parameters for obtaining the status of green securities have been determined. Using a number of literary sources, the authors substantiated the strengths and weaknesses of the green bond market. The regional aspect of green bond issuance is reinforced by the examples of leading issuing countries. The position of the European continent as a leader in issuing green bonds has been argued. The annual value of green bonds and directions for using the proceeds have been analyzed. The development trends and global potential of the green bond market have been substantiated. The authors have indicated the directions of green investment in unstable market conditions and summarized the common features of green financing. The ETF’s place in the chain of attracting investors to the green bond market has been determined. The article illustrates the dynamics of the main green bonds indices with an explanation of their selection criteria. It has been emphasized that modern society purposefully begins to use climate finance markets more effectively for a step-by-step transition to a green economy. Obstacles on the way to the expansion of operations on the green bond market have been specified. The prospects for the further development of the green financing market have been outlined to strengthen the synergy of ecology and finance.

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