European Green Bond Regulation: legal analysis of the impact on Baltic corporate green bond issuance

Abstract

The green bond market is quickly expanding as a result of increased concerns about climate change and environmental sustainability. From 2015 to 2020, the average yearly growth rate reached 50%. Although the Baltic States entered the market in 2015, green bond governance in this region has received limited academic attention. This thesis examines how the new European Union Green Bond Regulation will impact corporate green bond issuance in the Baltic States. Furthermore, it analyses current green bond issuing approach in the region, suggesting that market participants are mostly governments and state-owned enterprises due to the increased expenses associated with adherence to international standards. Since implementation of the new legislation is likely to make the process more costly for businesses, the thesis demonstrates that tax incentives from nations worldwide have increased private corporate green bond issuance and examines potential future policies to encourage issuers from the Baltic states.