| dc.description.abstract | Climate change presents a pressing global challenge, necessitating urgent action across all sectors of society. More and more companies are pledging ambitious decarbonization goals. In this context, green bonds have emerged as a significant financial instrument for financing sustainable initiatives, particularly in the corporate sector. This study investigates the relationship between the decarbonization ambitions of private issuers and the "greenium" of corporate green bonds. The greenium refers to the premium or discount associated with these environmentally focused bonds compared to their conventional counterparts. Through a comprehensive literature review, the study examines prior research on climate change urgency, corporate decarbonization efforts, the evolution of the green bond market and how bonds get their green certification. Utilizing a dataset of "Use of Proceed" green bonds issued by private listed companies in the European Union over the past five years, the study employs panel regression analysis to explore the impact of decarbonization targets on the greenium. The findings aim to provide insights for corporate strategies, informing decisions at the nexus of sustainability and financial markets. By contributing empirical evidence to this critical dialogue, the research seeks to advance understanding and facilitate informed action towards a low-carbon future | |
