Green Bonds As A Component Of The Sustainable Financing And Their Performance

An acceleration of the modernization of the (not only) European economy, expected to be more sustainable, climate-resilient, low-carbon, energy and resource-efficient, should be implemented in a socially fair manner. This represents one of the primary goals of an economy all over the world, which is also supported by the European Commission considering it its aim. Sustainable finance is understood as integration of services into the finance area that comply with environmental, social or governance criteria in business or investment decisions. The research objective of this scientific study is to suggest a sustainable form of financing which utilizes financial instruments, “green bonds” for raising the capital resources. The green bond market has experienced the expansion in 2013, when green bonds were for the first time issued by corporations and governments. Specifically, the study focuses on the green bonds—relatively young financial instruments—and highlights their recent development and performance. Data on green bonds and their performance in the period of 2013-2017 were obtained from Bloomberg and critically evaluated and analyzed if the green bond market depends on the crude oil prices. The results based on the analysis showed only small dependence so far. The green bond market is still a young financial market and needs further investigation.