Green bonds in the transport sector
Conference item
Bace, E. and Singh, S. 2023. Green bonds in the transport sector. 43rd EBES Conference. Madrid, Spain 12 - 14 Apr 2023 Eurasia Business and Economics Society (EBES). pp. 63-63
Title | Green bonds in the transport sector |
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Authors | Bace, E. and Singh, S. |
Abstract | 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). |
Sustainable Development Goals | 3 Good health and well-being |
4 Quality education | |
5 Gender equality | |
6 Clean water and sanitation | |
7 Affordable and clean energy | |
8 Decent work and economic growth | |
9 Industry, innovation and infrastructure | |
10 Reduced inequalities | |
11 Sustainable cities and communities | |
12 Responsible consumption and production | |
13 Climate action | |
14 Life below water | |
15 Life on land | |
16 Peace, justice and strong institutions | |
17 Partnerships for the goals | |
Middlesex University Theme | Sustainability |
Health & Wellbeing | |
Research Group | Centre for Enterprise, Environment and Development Research (CEEDR) |
Corporate Social Responsibility and Business Ethics group | |
International Business group | |
International and Cross-cultural Management group | |
Diversity and Gender group | |
Employment Relations group | |
Professional Practice group for Leadership, Work and Organisations | |
Strategic Marketing, Consumer Behaviour and Branding/Identity group | |
Centre for Education Research and Scholarship (CERS) | |
Conference | 43rd EBES Conference |
Page range | 63-63 |
Proceedings Title | 43rd EBES Conference – Madrid Program and Abstract Book |
ISBN | |
Electronic | 9786057173935 |
Publisher | Eurasia Business and Economics Society (EBES) |
Publication dates | |
Online | 24 Apr 2023 |
Publication process dates | |
Deposited | 02 May 2023 |
Accepted | 15 Mar 2023 |
Output status | Published |
Publisher's version | File Access Level Restricted |
Web address (URL) of conference proceedings | https://ebesweb.org |
Language | English |
https://repository.mdx.ac.uk/item/8q5qw
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