Green or Greed? Examining the Nexus Between Sovereign Green Bonds and National Climate Targets
(2023) EKHS34 20231Department of Economic History
- Abstract (Swedish)
- The fight against climate change has reached a critical point, requiring financial flows to align with climate-resilient pathways. This thesis investigates the alignment between sovereign green bonds and national climate targets. It expands the discussion from a corporate to a sovereign perspective, thus acknowledging the impact of sustainability disclosure practices by governments on the rest of society. The research question posed is: to what extent are sovereign issuers’ climate targets linked to their sovereign green bond impact reports? The research is based on a qualitative desk review of impact reports published by the ten largest sovereign issuers in the EU as of 2021. The findings suggest a weak link between sovereign green bonds... (More)
- The fight against climate change has reached a critical point, requiring financial flows to align with climate-resilient pathways. This thesis investigates the alignment between sovereign green bonds and national climate targets. It expands the discussion from a corporate to a sovereign perspective, thus acknowledging the impact of sustainability disclosure practices by governments on the rest of society. The research question posed is: to what extent are sovereign issuers’ climate targets linked to their sovereign green bond impact reports? The research is based on a qualitative desk review of impact reports published by the ten largest sovereign issuers in the EU as of 2021. The findings suggest a weak link between sovereign green bonds and national climate targets. There is a lack of climate target restatement. Diverse methodologies for calculating climate impact are prevalent, with no standardized approach. Reporting on green bond additionality is also lacking, hindering the quantifiable attribution of green value. Transparency and harmonization in disclosure practices emerge as key issues. This thesis rejects the concept that issuers proactively utilize green bonds to attain national climate targets. The presence of information asymmetries implies market underperformance. Additional research is needed to further understand the alignment, and policy intervention is necessary to facilitate more stringent, transparent, and universal standards for utilizing green bonds in the climate transition. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9129975
- author
- Hällgren, Pontus LU
- supervisor
- organization
- course
- EKHS34 20231
- year
- 2023
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 9129975
- date added to LUP
- 2023-09-21 10:38:07
- date last changed
- 2023-09-21 10:38:07
@misc{9129975,
abstract = {{The fight against climate change has reached a critical point, requiring financial flows to align with climate-resilient pathways. This thesis investigates the alignment between sovereign green bonds and national climate targets. It expands the discussion from a corporate to a sovereign perspective, thus acknowledging the impact of sustainability disclosure practices by governments on the rest of society. The research question posed is: to what extent are sovereign issuers’ climate targets linked to their sovereign green bond impact reports? The research is based on a qualitative desk review of impact reports published by the ten largest sovereign issuers in the EU as of 2021. The findings suggest a weak link between sovereign green bonds and national climate targets. There is a lack of climate target restatement. Diverse methodologies for calculating climate impact are prevalent, with no standardized approach. Reporting on green bond additionality is also lacking, hindering the quantifiable attribution of green value. Transparency and harmonization in disclosure practices emerge as key issues. This thesis rejects the concept that issuers proactively utilize green bonds to attain national climate targets. The presence of information asymmetries implies market underperformance. Additional research is needed to further understand the alignment, and policy intervention is necessary to facilitate more stringent, transparent, and universal standards for utilizing green bonds in the climate transition.}},
author = {{Hällgren, Pontus}},
language = {{eng}},
note = {{Student Paper}},
title = {{Green or Greed? Examining the Nexus Between Sovereign Green Bonds and National Climate Targets}},
year = {{2023}},
}