Green Bonds in Europe and Asia: Development trends. Opportunities for Azerbaijan in green bonds market

Abstract

Over the past few decades, the increasing urgency of climate change and worsening environmental degradation have pushed countries and financial markets to prioritize sustainable development. Thus, the demand for financial instruments supporting environmental projects has increased. Green bonds have become a source of financing for environmental, green projects among these instruments. These bonds have supported projects such as energy-efficient buildings, clean transportation, pollution reduction, etc. As a result, they help achieve climate goals by saving energy. These bonds also have an impact on increasing social responsibility in society. In this thesis, I will focus on the green bond market in the European and Asian regions. As an example, I have examined the markets through Germany and Japan. I have examined in this thesis work, the regulations and development trends of green bonds in both countries.In the Data and Methodology section, you will be informed of the positive impact of green bond issuance on GDP and renewable energy production worldwide. In that section, the relationship between them is statistically analyzed. As a result, we present our proposals for Azerbaijan, taking advantage of international experiences. With the help of this thesis, we will get acquainted with the possible advantages and disadvantages for Azerbaijan, a new participant in the green bond market.