A Note on Transition Bonds and Finance

Gireesh Shrimali () and Thomas Heller ()
Additional contact information
Gireesh Shrimali: Stanford University
Thomas Heller: Stanford University

Chapter Chapter 8 in Settling Climate Accounts, 2021, pp 145-160 from Springer

Abstract: Abstract Transition finance will play a critical role in reaching agreed global climate targets. This chapter moves from an overview of the landscape of existing purpose-built bonds, including green bonds, to a detailed discussion of the goals, issues, and guiding principles for a recently created transition finance tool, transition bonds. Analyzing the rationale, goals, and challenges of a transition bond framework, it derives lessons from experience with green bonds and related climate finance instruments that have proliferated in number and scale of funds raised in the past decade. It notes that while competing initiatives to define new transition metrics and pathways are predicated on developing markets around voluntarily-accepted quality standards for transition bonds, persistent concerns with reconciling high-level transition standards with firm-specific flexibility and incentives for carbonwashing still need to be addressed. In conclusion, the chapter argues that states, as market regulators, and the ultimate bearers of sovereign risk in economies exposed to increasing transition impacts will have primary responsibility for orderly transition.

Keywords: Transition finance; Transition bonds; Green bonds (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-83650-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9783030836504

DOI: 10.1007/978-3-030-83650-4_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().