Green bonds and sustainable finance: Performance insights and future outlook

Patience Okpeke Paul 1, * and Toluwalase Vanessa Iyelolu 2

1 Henry Jackson Foundation Medical Research International Ltd/Gte, Nigeria.
2 Financial analyst, Texas USA.
 
Review
Open Access Research Journal of Science and Technology, 2024, 11(02), 064–073.
Article DOI: 10.53022/oarjst.2024.11.2.0094
Publication history: 
Received on 06 June 2024; revised on 13 July 2024; accepted on 16 July 2024
 
Abstract: 
This review paper comprehensively analyses green bonds and their role in sustainable finance. It examines green bonds' definition, characteristics, performance, market trends, challenges, and opportunities. Findings reveal that green bonds offer investors an avenue to align financial objectives with environmental goals while generating competitive returns. However, challenges such as standardised definitions and insufficient investable projects hinder market growth. Implications for investors, issuers, and policymakers are discussed, highlighting the importance of integrating environmental, social, and governance factors into decision-making processes. Recommendations include further research to enhance understanding and stakeholder collaboration to promote transparency and accountability. Ultimately, green bonds promise to advance environmental sustainability and combat climate change in a resilient, low-carbon economy.
 
Keywords: 
Green bonds; Sustainable finance; Performance analysis; Market trends; Challenges; Opportunities
 
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