Green bonds in the transport sector

Bace, Edward ORCID logoORCID: and Singh, Sukhjt (2023) Green bonds in the transport sector. 43rd EBES Conference – Madrid Program and Abstract Book. In: 43rd EBES Conference, April 12-14, 2023, Madrid, Spain. e-ISBN 978-605-71739-3-5. [Conference or Workshop Item]

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This paper aims to highlight the benefits of transportation companies to issue unsecured and covered green, social and sustainable bonds, which are well suited to promote environmental and social investment in the sector. These benefits have already been illustrated for many participants. Green bonds represent an effective and accessible way for the environmental and social agenda to be advanced throughout the transport industry, and to raise the sector’s standing globally in addressing climate change and social issues, through strengthening of environmental, social and governance (ESG) structures. Data and methods: The study examines the evolution of covered and uncovered green bonds and their application in the transport industry. Different characteristics of green bonds are explored, including issuance process, use of proceeds, eligible assets for covered bonds, disclosure standards, project evaluation and selection, and reporting. The approach contrasts European and North American experience with what more emerging economies can expect going forward, in an effort to deliver some recommend dations in view of future prospects. Results: Green, social and sustainable (GSS) bonds only account for 3% of total GSS bonds, issued globally in the debt markets, suggesting substantial growth potential (Caron and Munoz, 2021). There is mounting interest in green bonds globally, where they are proven to be efficacious in helping to meet financing and environmental targets. While social or green classifications are not always directly credit relevant, if they support demand leading to narrower spreads, this can be positive for credit ratings, other things being equal (Pagani et al., 2021; Zerbib, 2019). The social and environmental challenges of the carbon intensive transport industry require substantial funding in a resource-driven context. The increasing use of green bonds, already under way in many sub-sectors, is found to be an effective solution to help meet these challenges, while driving the agenda of responsibility forward (Tang and Zhang, 2018).
Conclusions:This focused overview of green bonds reveals them to be effective instruments for promoting environmental and social responsibility, for transport entities, both public sector and corporations (Valavina et al., 2021). They ought to form an integral and increasing component of funding plans going forward.

Item Type: Conference or Workshop Item (Presentation)
Sustainable Development Goals:
Research Areas: A. > Business School
A. > Business School > Accounting and Finance
A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
A. > Business School > Economics
A. > Business School > International Management and Innovation
A. > Business School > International Management and Innovation > Corporate Social Responsibility and Business Ethics group
A. > Business School > International Management and Innovation > International Business group
A. > Business School > International Management and Innovation > International and Cross-cultural Management group
A. > Business School > Leadership, Work and Organisations
A. > Business School > Leadership, Work and Organisations > Diversity and Gender group
A. > Business School > Leadership, Work and Organisations > Employment Relations group
A. > Business School > Leadership, Work and Organisations > Professional Practice group for LWO
A. > Business School > Marketing, Branding and Tourism
A. > Business School > Strategic Marketing, Consumer Behaviour and Branding/Identity group
A. > Centre for Academic Practice Enhancement (CAPE)
A. > Centre for Education Research and Scholarship (CERS)
A. > Learning Enhancement Team (LET)
Item ID: 37890
Depositing User: Edward Bace
Date Deposited: 02 May 2023 13:21
Last Modified: 12 May 2023 12:17

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