Kateryna Klymenko, Nataliia Ukhnal
The green bond market, a key financial instrument for funding environmentally sustainable projects, has witnessed significant global growth since its inception in 2007. This paper analyzes the current trends, challenges, and future prospects of the green bond market, focusing on the role of political support, investor demand, and technological advancements in driving its expansion. While major issuers like Europe, the US, and China dominate, the market’s development faces hurdles such as the lack of unified global standards and high verification costs, which limit broader participation, especially from developing countries. Despite these challenges, green bonds have the potential to transform global financial systems by funding projects in renewable energy, sustainable transport, and waste management. For Ukraine, the green bond market offers substantial opportunities, particularly in post-war reconstruction efforts. Ukraine’s integration with European and global markets, coupled with support from international financial institutions, positions it to leverage green bonds for energy modernization and environmental sustainability, contributing to long-term economic recovery. This paper underscores the pivotal role green bonds can play in advancing Ukraine’s environmental goals and its integration into the global financial ecosystem.
Climate Bonds Initiative. (2024). A Record Start to the Year for Sustainable Debt. https://www.climatebonds.net/2024/06/record-start-year-sustainable-debt.