Green bonds: benefits and risks

Abstract

Green bonds are no miracle cure against global warming. Without arguments in their favour, green bonds are a well-formulated paper tiger. Therefore, the benefits/risks of green bonds are important to issuers/investors. These benefits/risks are a highly debated topic in the finance industry and academic literature. This paper tries to find out if green bonds are beneficial for both parties involved and can serve as a suitable source of financing for the transformation of the economy. The following main hypothesis was made: The benefits of green bonds outweigh the risks for investors and issuers