Green bonds as a solution to climate change: the european market.

Abstract

The financial system has a key role today, the fight against climate change. The financial system is working towards a circular and low carbon economy entering financial instruments such as green bonds into its markets. Green bonds are in constant expansion and are a great support to finance investments and projects that promote the mitigation of climate change. This report is divided into two parts: in a first phase the concept of green bond is introduced and an analysis and description of the current European and Spanish market is carried out; in the second phase, a quantitative analysis of the green bonds issued by Repsol, one of the main companies with the highest emission of greenhouse gases in Spain, is done. The results of the analysis show that the financial system has a concern for the environment and that it is working constantly to create standards, regulations and labels that lead to a solid development of the market of green financial instruments.