A European Climate Bond

Irene Monasterolo (), Antonia Pacelli (), Marco Pagano and Carmine Russo ()
Additional contact information
Irene Monasterolo: Utrecht University and SUERF.
Antonia Pacelli: Toulouse School of Economics and INRAE
Carmine Russo: University of Naples Federico II

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: The European Union faces a large climate investment gap. To fill it, we propose the joint issuance of EU climate bonds. These bonds would be funded by the sale of emission allowances, traded on the EU Emissions Trading System and extended to cover all sectors. Access to the resulting funds would be conditional on countries’ performance on the implementation of climate investments. EU climate bonds would meet global demand for a safe and liquid asset, while increasing the speed and efficiency of EU climate investing, its resilience to sovereign crises, and the greening of investors’ portfolios and monetary policy.

Keywords: climate finance; green investment; EU safe asset; emission allowances; ETS. (search for similar items in EconPapers)
JEL-codes: D62 E61 H23 H27 P18 Q51 Q52 Q53 Q54 Q58 (search for similar items in EconPapers)
Date: 2024-03-01
New Economics Papers: this item is included in nep-eec, nep-ene, nep-env, nep-fmk and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.csef.it/WP/wp702.pdf (application/pdf)

Related works:
Working Paper: A European Climate Bond (2024)
Working Paper: A European Climate Bond (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:702

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