GREEN BONDS: A GENUINE PATH TO SUSTAINABILITY OR A CLEVER MARKETING STRATEGY?
DOI:
https://doi.org/10.62737/b377g825Keywords:
Green bonds; Sustainable finance; ESG; Renewable energy; Climate change mitigation; Impact investingAbstract
Green bonds are gaining popularity as a way to raise funds for environmental projects—like building solar plants or protecting against climate risks. They’re seen as a win-win: good for the planet and appealing to investors. But as more companies and governments issue green bonds, questions have started to surface. Are these bonds truly driving sustainability, or are they just being used as a marketing tool?
This paper explores both sides of that question. By looking at real examples from India, the Netherlands, and the World Bank, and using reports from groups like IFC, SEBI, and the Climate Bonds Initiative, we examine how green bonds are being used in practice—and where they fall short. We also study new regulatory efforts and innovative instruments like transition bonds and sustainability-linked bonds.
Our findings suggest that while green bonds can lead to meaningful change, they’re not always used as intended. Without strong rules, transparency, and accountability, they risk becoming more about image than impact. If done right, though, they can still be one of the most powerful tools in the fight against climate change.
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