European Green Bonds Priced at Discount, Impacting Sustainable Investments.
The study looked at green bonds in Europe to see if they are priced differently than regular bonds. They found that climate-focused bonds in Europe are actually priced lower than similar regular bonds, with a small difference called greenium. However, this greenium was not significant in the UK, France, Netherlands, and Germany. This research helps investors, regulators, and companies understand the green bond market better.