How Green are Green Debt Issuers?
IMF Working Papers, July 23, 2021
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- How Green are Green Debt Issuers?
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Bibliographic details
- Authors: Jochen Schmittmann, Chua Han Teng
- Published: July 23, 2021
- Series: IMF Working Papers
Summary findings
- Green debt markets are rapidly growing while product design and standards are evolving.
- Many policymakers and investors view green debt as an important component in the policy mix to achieve the transition to a low carbon economy and ensure the pricing of climate risks.
- The analysis documents the CO2 emission intensity of corporate green debt issuers.
- Key empirical findings:
- Green bond issuers have lower emission intensities relative to other firms.
- There is no difference in emission intensity for green loan and sustainability-linked loan borrowers relative to other firms.
- Green bond, green loan, and sustainability-linked loan borrowers lower their emission intensity over time at a faster rate than other firms.
Authors and timing
- By Jochen Schmittmann, Chua Han Teng
- July 23, 2021
Research context and purpose
- Contributes to the nascent literature on the environmental impact of green debt by documenting CO2 emission intensity for corporate green debt issuers.
- Situates green debt as a policy and market tool relevant for the low carbon transition and climate-risk pricing.
Source: https://www.imf.org/en/publications/wp/issues/2021/07/23/how-green-are-green-debt-issuers-462142
Content in this bundle
- Working Paper