Advancement of Cleaner Production Through Green Bond Emissions – Challenges and Weaknesses

Green bonds represent a significant innovation in the field of sustainable finance over the past decade. Although they are becoming increasingly popular, academic studies on green bonds are rare and generally focus on analyzing the impact of green labels on the returns of these bonds. This research represents one of the first attempts to empirically explore broader issues related to green bonds, such as the reasons why investors and issuers enter the green bond market, the role of these bonds in redirecting capital toward more sustainable economic activities, and their impact on how organizations approach sustainability. This paper provides a detailed insight into the rapid growth of the green bond market and analyzes how these bonds are changing the way market participants perceive and implement sustainability in their operations. Green bonds function like regular bonds, but differ in that the funds raised from investors are exclusively used to finance projects that have a positive environmental impact, such as renewable energy sources and eco-friendly infrastructure.