Sandro Teixeira Maróstica
Master's – Green Bonds and the Sustainable Development
Advisor: Prof. Dr. Jacques Marcovitch
Comission: Prof. Dr. Roy Martelanc, Prof. Luís Enrique Garcia e Prof. Dr. João Eduardo Albino Pimentel
Class: Ruy Leme, FEA-1
This study analyses the role of Green Bonds in financing to transition to sustainable, llow environmental and positive social impact economic activities. The study draws a comparison between Green Bonds and other types of bonds already issued by their issuers. The yields and prices of Green Bonds and other bonds are compared and are adopted as proxies to evaluate the importance that society has been attributing to the subject of climate change and environmental degradation, and to assess whether Green Bonds are an attractive financing alternative to transition to sustainable economic activities compared to other mechanisms. The results of such comparisons indicate that the majority of Green Bonds does obtain a price premium upon issuance, but such premium tend to be reduced in the secondary market. The provision of periodic and standardized information on the reporting of the environmental performance of the activities financed by Green Bonds could help differentiating them in the secondary bond market. Other measures suggested in the study could help consolidating Green Bonds as a differentiated asset class, contributing to the development of their markets. The research encompasses a qualitative and quantitative mixed approach whose technique is documental analysis.
*Abstract provided by the author