Green Transition in Emerging Countries: The Issuance of Green Bonds by Brazil and China

Abstract

Green bonds had emerged as a financial innovation, mobilizing incremental resources for long-term financing of projects focused on building sustainable infrastructure. Since COP-21, new ways of producing and consuming, that mitigate environmental and climate change, have been emphasized and several countries committed themselves to increase their participation in the green bond market. The aim of this article is to identify the main characteristics and differences of the green bond market in Brazil and China, especially in terms of the sectors and the allocation of income. For this, information on the amount issued in certified green bonds, in the Climate Bonds Initiative database, was used. In terms of the total amount issued in certified green bonds and the allocation of resources by sector, China shows more significant results. This shows that the financial characteristics of this country associated with planning and wellcoordinated national policies have contributed to Chinese having better results.

Green bonds in climate finance: A review of USA and African initiatives

“…The growing relevance of green bonds in climate finance is not limited to developed countries, as they have gained prominence in emerging economies, with a recent study suggesting their growing relevance for climate finance in these regions (Fu & Ng, 2021). Green bonds have also emerged as tools to fuel the transition to a climate-resilient economy in countries such as China and Brazil, mobilizing incremental resources for long-term financing of sustainable infrastructure projects (Deus et al, 2021).…”