Analysing the potential of green bonds for resource efficiency finance

“Green bonds” are an effective instrument for mobilising capital for green investment. Although the market for green bonds emerged only a few years ago, it already has the ability to decisively contribute to closing existing financing shortfalls in environmental and climate protection. In that context, green bonds are attractive for both private and public investors. While China, Norway, and the United States have taken a pioneering role in this area, France, Germany, Italy, and further European Union Member States are increasingly making use of green bonds to mobilise capital. For example, they have used green bonds to promote investment in resource-efficient technologies.

However, standardisation remains underdeveloped: There is still a lack of consensus on a generally applicable working definition of green bonds and on the application of mobilised capital. In light of this, adelphi is performing a study in cooperation with its partners COWI and Eunomia Research & Consulting on the potential green bonds hold for financing measures aimed at increasing resource efficiency.

The study will first examine the development and functioning of green bond markets in nine selected countries in North America, Europe, and Asia. It will further analyse and appraise various options for deciding upon and establishing uniform standards. The study is to be based upon comprehensive research and interviews with representatives of national and international financial institutions. On that basis, the study will propose policy recommendations on strengthening green bond markets in the European Union. The results and recommendations will then be presented and discussed with representatives of financial institutions, think tanks, and NGOs at a half-day stakeholder meeting in Brussels.