## How Large is the Sovereign Greenium?

_IMF Working Papers, April 7, 2023_

## Source details

**Canonical URL:** [How Large is the Sovereign Greenium?](https://www.imf.org/en/publications/wp/issues/2023/04/07/how-large-is-the-sovereign-greenium-530332)

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## Bibliographic details
- Authors: Sakai Ando, Chenxu Fu, Francisco Roch, Ursula Wiriadinata
- Published: April 7, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400235160.001

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### Overview
- This paper assembles a comprehensive sovereign green bond database and estimates the sovereign greenium.
- The development of green bond markets has been one of the most important financial breakthroughs in the domain of sustainable finance during the last 15 years.
- A central benefit associated with green bonds is that they exhibit a positive green premium (greenium), i.e., a lower yield relative to a similar conventional bond.
- Sovereign green bond issuances have been relatively recent and not well documented in the literature.

### Key findings
- Green bonds are issued at a relatively small premium of 4 basis points on average in Advanced Economies.
- The greenium is growing over time.
- The greenium is considerably larger for Emerging Market Economies: 11 basis points on average.

### Subjects and keywords
- Subjects: Bonds, Climate finance, Environment, Financial institutions, Sovereign bonds
- Keywords: bond database, Bonds, Climate Change., Climate finance, Financial Innovation, green bond, Green bond data, Green Bonds, green premium, Greenium, Sovereign bonds, Sovereign Debt, Sustainable Finance

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2023/04/07/how-large-is-the-sovereign-greenium-530332_