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Financing Low - Carbon Materials Through Green Bonds : Proposing Criteria and Benchmarks for Green Bonds in the Aluminium Sector

Berendsen, Stefanie LU (2019) In IIIEE Master Thesis IMEN56 20191
The International Institute for Industrial Environmental Economics
Abstract
Reducing emissions in the basic materials sector, which account for 25% of the global greenhouse gas emissions is a pressing climate mitigation task. Investments into decarbonising this sector are critical and therefore raising capital though climate finance is gaining attention. Green bonds are a new asset class that incorporate sustainability criteria into bonds. Despite the increasing use of green bonds, there are no criteria for this instrument for the materials sector. The lack of criteria inhibits much needed investments, risks environmental integrity, and facilitates greenwashing. This thesis aims to propose effective and transparent criteria for green bonds in the materials sector. The research question and methodology have been... (More)
Reducing emissions in the basic materials sector, which account for 25% of the global greenhouse gas emissions is a pressing climate mitigation task. Investments into decarbonising this sector are critical and therefore raising capital though climate finance is gaining attention. Green bonds are a new asset class that incorporate sustainability criteria into bonds. Despite the increasing use of green bonds, there are no criteria for this instrument for the materials sector. The lack of criteria inhibits much needed investments, risks environmental integrity, and facilitates greenwashing. This thesis aims to propose effective and transparent criteria for green bonds in the materials sector. The research question and methodology have been developed with a research group at the DIW Berlin. To investigate the question, the aluminium sector has been chosen as a case study. This research draws on elements of the green bond taxonomy by the Climate Bond Initiative and CICERO. As a result, this thesis proposes two complementary sets of green bond criteria for the aluminium sector: one focuses on management strategies and disclosures, and a second set focuses on technological mitigation options. This paper further finds that academic literature on developing criteria for green bonds is largely lacking and urgently requires more attention, so that the potential of this new asset class can further explored. (Less)
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author
Berendsen, Stefanie LU
supervisor
organization
course
IMEN56 20191
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Climate finance - Green bonds – Low-Carbon Materials – Green Bond Criteria – Aluminium Production
publication/series
IIIEE Master Thesis
report number
2019:09
ISSN
1401-9191
language
English
id
8991584
date added to LUP
2019-08-13 13:41:28
date last changed
2019-08-13 14:13:45
@misc{8991584,
  abstract     = {Reducing emissions in the basic materials sector, which account for 25% of the global greenhouse gas emissions is a pressing climate mitigation task. Investments into decarbonising this sector are critical and therefore raising capital though climate finance is gaining attention. Green bonds are a new asset class that incorporate sustainability criteria into bonds. Despite the increasing use of green bonds, there are no criteria for this instrument for the materials sector. The lack of criteria inhibits much needed investments, risks environmental integrity, and facilitates greenwashing. This thesis aims to propose effective and transparent criteria for green bonds in the materials sector. The research question and methodology have been developed with a research group at the DIW Berlin. To investigate the question, the aluminium sector has been chosen as a case study. This research draws on elements of the green bond taxonomy by the Climate Bond Initiative and CICERO. As a result, this thesis proposes two complementary sets of green bond criteria for the aluminium sector: one focuses on management strategies and disclosures, and a second set focuses on technological mitigation options. This paper further finds that academic literature on developing criteria for green bonds is largely lacking and urgently requires more attention, so that the potential of this new asset class can further explored.},
  author       = {Berendsen, Stefanie},
  issn         = {1401-9191},
  keyword      = {Climate finance - Green bonds – Low-Carbon Materials – Green Bond Criteria – Aluminium Production},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Master Thesis},
  title        = {Financing Low - Carbon Materials Through Green Bonds : Proposing Criteria and Benchmarks for Green Bonds in the Aluminium Sector},
  year         = {2019},
}