The Legal Perspectives of Green Bond Issuance’s Contribution to Sustainable Economic Development

Abstract

Green bond issuance has presented rapid growth since its launch in 2007. This study provides a multispectral perspective on green bond issuance and its role on sustainable development. A detailed legal framework is employed in order to analyze the viability of green bond issuance as concerns financing programs with environmental and economic benefits. Funding environmentally-friendly projects through bond issuance is analyzed from a legal perspective of economic development. We argue that the legal framework is not preventive towards green bond purchases. Nevertheless, higher efforts for cohesion in the European Union are necessary so that the legal framework could render friendlier towards low-carbon investments. Liquidity injections through green bonds could prove efficient for preserving stability in the global financial system but only in a limited extent and a temporary basis.