Challenges and Policy Implications for Marketing Green Bonds

Book titled "Consumer Behaviour & Contemporary Marketing Strategy", (Eds.), Tripurasundari Joshi, Jayesh P. Aagja and Sapna Parashar, Excel India Publishers, New Delhi for IMNU, Jan. 2017, ISBN: 978-93-86256-32-4, pp. 371-384.

14 Pages Posted: 25 Mar 2017

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management; AIIM - Ahmedabad; SPM - PDPU

Yogesh Mungra

Nirma University, Students

Kathak Mehta

Institute of Management, Nirma University; Nirma University, Students

Date Written: January 5, 2017

Abstract

Green bonds emerged as a new form of environmental financing. While most investors still view them as a niche product in the overall fixed income market. Green bonds have grown rapidly to nearly USD 62.6 billion in issuance till Oct 2016 globally. The share of issuances by Indian entities was only 3% of the total green bonds issuance across the globe. The Government of India has set an ambitious target of building 175 gigawatts of renewable energy capacity by year 2022, from just over 30 gigawatts capacity in 2015. It is estimated that this jump towards renewable energy will require funding of atleast USD 200 billion. This paper is aimed to discuss the present scenario of green bonds as well as challenges and policy actions for financing green projects. Paper reveals that the limited bankable green projects and capacity building for issuers as well as awareness about the green bonds amongst the Indian investors are the main challenges for green bonds. These challenges can be overcome with the help of policy actions like developing priority list of green projects, ensuring financial viability and pipeline transparency for the investors and establishing a collaborative platform for the government, banks and investors. Government needs to create awareness through various marketing activities. Future growth of the Green bonds will depend on the ability of issuers, source of the projects, issue at scale, engage with stakeholder and supported standards for green bonds.

Note: This paper was presented at the 20th Nirma International Conference on Management (NICOM 2017) on the theme of “Contemporary Marketing: Concept, Practice and Method” at Institute of Management, Nirma University (IMNU), Ahmedabad, India during Jan. 5 - 7, 2017. Paper is uploaded with the permission of IMNU and its contents may be cited with its source for academic purpose such as the brief quotations embodied in critical reviews and certain other non-commercial uses as permitted by copyright law. However, the copyright of this paper remains with (IMNU) and its permission is necessary for any commercial use.

Keywords: Green Bonds, Environmental Financing, Green Finance, Green Investments

JEL Classification: E22, F3, G1, G2, O16, P34, Q56

Suggested Citation

Chugan, Pawan Kumar and Mungra, Yogesh and Mehta, Kathak and Mehta, Kathak, Challenges and Policy Implications for Marketing Green Bonds (January 5, 2017). Book titled "Consumer Behaviour & Contemporary Marketing Strategy", (Eds.), Tripurasundari Joshi, Jayesh P. Aagja and Sapna Parashar, Excel India Publishers, New Delhi for IMNU, Jan. 2017, ISBN: 978-93-86256-32-4, pp. 371-384. , Available at SSRN: https://ssrn.com/abstract=2937627

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, GUJARAT 382481
India

HOME PAGE: http://pawanchugan.wordpress.com

AIIM - Ahmedabad ( email )

Adani Shantigram, Vaishno Devi Circle
S.G. Highway
Ahmedabad, Gujarat 382421
India

HOME PAGE: http://pawanchugan.wordpress.com/

SPM - PDPU ( email )

Raisan
Gandhinagar, Gujarat 382007
India

HOME PAGE: http://pawanchugan.wordpress.com/

Yogesh Mungra

Nirma University, Students ( email )

Ahmedabad, Gujarat
United States

Kathak Mehta

Institute of Management, Nirma University ( email )

Sarkhej-Gandhinagar Highway
Chandlodia, Via : Gota
Ahmedabad, Gujarat 382 481
India

Nirma University, Students ( email )

Ahmedabad, Gujarat
United States

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