Green bonds and carbon emissions: exploring the case for a rating system at the firm level
Year: 2020
Type: article
Abstract: Green bonds are debt instruments whose proceeds finance projects with various environmental benefits - including climate change mitigation. So far, however, green bond projects have not necessarily translated into comparatively low or falling carbon emissions at the firm level. We discuss the potential benefits of a firm-level rating based on carbon intensity (emissions relative to revenue) to complement existing project-based green labels. We argue that such a rating system could provide a useful signal to investors and encourage firms to reduce their carbon footprint.
Authors: Torsten Ehlers, Benoı̂t Mojon, Frank Packer
Institution: Bank for International Settlements
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W3086981664