This paper aims to provide guidance to issuers of sovereign ESG bonds, with a focus on Emerging Market and Developing Economies (EMDEs). An overview of the ESG financing options available to sovereign issuers is followed by an analysis of the operational requirements and costs that the issuance...

Governments and fiscal stability authorities have an interest in the sovereign-debt implications of climate change being transparent. To this end, we look at the exposure of EU sovereigns to climate risks, study international best practices, and describe the transmission channels from climate...

As a consequence of the missing global agreement in the fight against Climate Change, several independent emissions trading schemes are coming into operation. From an economic perspective it would be desirable if prices of CO2 emission allowances were the same in each scheme, as this would...

One of the lessons we have learned during our industrialization process is that the garbage we left behind would trip up someone else. In other words, it is not possible to smooth over cracks any more. The home owner has already surpassed her limits; tired and exhausted, but we are still getting...

In this paper, we assess public attitudes on climate change in Europe over the last decade. Using aggregate figures from the Special Eurobarometer surveys on Climate Change, we find that environmental concern is directly related to per capita income, social trust, secondary education, the...

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This paper analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one...

The Green Climate Fund (GCF) is supposed to be the main institutional tool that assists the achievement of the goals of the Paris Agreement and Agenda 2030’s Goal 13: Take urgent action to combat climate change and its impacts. The original projections envisaged the mobilization of $100...

European Union (EU) institutions and agencies are increasingly raising awareness on the circular economy agenda. They are encouraging marketplace stakeholders to engage in sustainable production and consumption behaviors by reducing, reusing, restoring, refurbishing and recycling resources in...

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...