CLIMATE BONDS: THE GREEN ADVANTAGE

This study provides a literature review on green bonds, which have emerged as a significant tool for sustainable finance and impact investing. Green bond market pricing, green bond financing's consequences on the economy and environment, and legal and institutional concerns in the green bond market are all discussed in this study's literature analysis. Greenium, or the degree to which "green" bonds cost more than their "non-green" equivalents, is a popular topic of discussion in the academic literature on market pricing. Economic and environmental literature impacts primarily deal with the reaction of the stock market to the issuing of green bonds, the value implications of these bonds for other parties, and the impact on investment in environmentally friendly initiatives. The existing problems and potential solutions in the green-bond market are discussed in this study.