GREEN BONDS AND SUSTAINABLE FINANCE: ASSESSING THE FINANCIAL AND ENVIRONMENTAL IMPACT OF GREEN INVESTMENTS

Abstract

The effects of green bonds and sustainable financing on both financial results and ecological sustainability are the subject of this study. There has been a rise in the popularity of green bonds as a means of financing sustainable development initiatives that aim to improve the environment. Finding out how well green bonds work in terms of financial returns and environmental benefits is the main goal of this research. This study takes a mixed-methodologies approach, meaning that it uses both quantitative and qualitative methods to evaluate the environmental impacts of green bonds. The environmental study looks at how well funded projects are in line with sustainability objectives and how they affect environmental indicators in a concrete way, while the financial analysis compares the returns and risk profiles of green bonds to conventional bonds. The results show that green bonds are valuable for what they do to promote sustainable investing habits and enhance the environment, even if they may provide financial returns that are on par with conventional bonds. In the latter section of the study, we address the questions that this research raises for financial institutions, lawmakers, and investors, stressing the need to disclose green bond consequences transparently and include environmental concerns into investment choices. This study demonstrates that green bonds have the ability to promote responsible investing and better financial markets.