Green Bonds as a Tool for Sustainable Development on Emerging Markets

Abstract

The primary goal of the paper is to determine the impact of new investment tools on the development of global markets. In this regard, environmental finance is a new and powerful means of stimulating economic growth in emerging financial markets. Environmental finance offer more than just access to capital. They can be a valuable tool for issuers to communicate their priorities to investors. Bonds can send important signals to the market about sustainability strategies; demonstrate proactive risk management, and long-term thinking, while offering a financing and communications tool that is tied to measurable results. The study was carried out by Environmental Finance's database. Based on the empirical data, the results on volumes, countries, exchanges, currencies and other indicators, which characterize the development of green bonds, were presented in study. The study used methods of comparison and grouping method, as well as common-size analysis. This paper makes these contributions: 1) presents the impact of environmental finance on the economic indicators of some countries; 2) provides, that significant growth of investments in environmental finance is associated with legislative initiatives of the leading countries in the global financial market; 3) estimates the advantages of green bonds and lists the lost benefits for the Russian economy; 4) presents, that a significant increase in investments in green bonds is related with the legislative initiative in the country.