The green transition in emerging economies : green bond issuance in Brazil and China.
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Date
2022
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Abstract
Green bonds have emerged as an innovative financial instrument that may be used to
mobilise incremental resources for long-term financing projects focused on building
sustainable infrastructure. In this regard, this article advances research on green bond
markets in emerging economies (EEs) by comparing the evolution of the certified
green bonds markets in Brazil and China. For this purpose, a mixed analysis was
applied. The qualitative analysis is based on a literature review to contextualise the
main drivers and barriers to the evolution of the green bond market in light of
national policies and features of the financial system in each country. For the
quantitative analysis, the certified green bond markets are assessed in terms of the
amounts issued as a percentage of the debt securities markets, considering the
participation of each issuer type and the allocation of revenue across eligible
sectors. Information on certified green bond amounts issued and on debt
securities’ markets was obtained from the Climate Bonds Initiative and BIS
databases. The results show that the evolution of the Chinese and Brazilian
certified green bonds markets remains negligible, in terms of the whole debt
securities market. Although green bonds may be considered an important market
solution, they still do not provide sufficient resources necessary for a meaningful
green transition, especially in EEs. However, findings also show that in China,
compared to Brazil, features of the financial system combine with more
consolidated green policies to act in favour of scaling up and distributing revenue
to crucial sectors to green transition.
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Keywords
Policy coordination, Financial system
Citation
DEUS, J. L. de; CROCCO, M.; SILVA, F. F. The green transition in emerging economies: green bond issuance in Brazil and China. Climate Policy, v. 22, n. 9-10, p. 1252–1265, 2022. Disponível em: <https://www.tandfonline.com/doi/epdf/10.1080/14693062.2022.2116381?needAccess=true&role=button>. Acesso em: 01 mar. 2023.