Green Bonds: Legal and Policy Issues

Capital Markets Law Journal, Vol. 15, No. 4, 2020, pp. 418-442

U of Melbourne Legal Studies Research Paper No. 917

27 Pages Posted: 21 Oct 2020 Last revised: 7 Dec 2020

See all articles by Lloyd Freeburn

Lloyd Freeburn

University of Melbourne

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: May 6, 2020

Abstract

The market for green bonds has grown rapidly in recent years. This has resulted in increased attention on legal and policy issues associated with green bonds. These issues are the focus of this article. The article first describes key aspects of the green bond market including the nature and role of green bonds. It then discusses the main features of green bonds and the green bond market, including their benefits, cost and the role of green bond standards. The final section of the article examines selected issues, including various aspects relating to ‘greenwashing’ – the practice of falsely attributing environmentally positive credentials to a bond claimed to be ‘green’. Other issues discussed include pressures to relax green bond standards arising from demand for green bonds outstripping supply, and the position applying in cases of ‘green defaults’ – where the green promises made in relation to a bond are not fulfilled.

Keywords: green bonds, corporate finance, climate and environmental impact finance

Suggested Citation

Freeburn, Lloyd and Ramsay, Ian, Green Bonds: Legal and Policy Issues (May 6, 2020). Capital Markets Law Journal, Vol. 15, No. 4, 2020, pp. 418-442, U of Melbourne Legal Studies Research Paper No. 917, Available at SSRN: https://ssrn.com/abstract=3715969 or http://dx.doi.org/10.2139/ssrn.3715969

Lloyd Freeburn

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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