Unlocking trends in green bonds: Navigating opportunities and challenges for sustainable development in E7 countries
Anam Khan, Disha Arora and Mansi Kumari Meena
Green bonds have become a cornerstone of financing environmentally friendly projects and driving global sustainability. This study investigates the adoption of green bonds within emerging economies, focusing on seven emerging economies - Brazil, Indonesia, Mexico, Russia, China, India, and Turkey. Although globally, the green bond market flourishes, emerging economies face a unique set of regulatory and market hurdles hindering the growth of sustainable finance. Macroeconomic instability, underdeveloped bond markets, and lingering regulatory uncertainties act as structural impediments. Moreover, concerns like gaps in information disclosure, limited investor awareness, and the constant threat of "greenwashing" call for constant vigilance. Despite these challenges, the study reveals encouraging patterns. China has a thriving green bond market that is supported by favourable regulatory environments and attractive investor incentives. In a similar vein, tax advantages encourage investment in Mexico’s green bond market, which shows promising growth. However, disparities persist across nations, with some struggling due to immature legal frameworks and policy inconsistencies. Nevertheless, the study proposes policy recommendations that can be implemented to unlock the full potential of green bonds and bolster their role in sustainable development. Encouraging policy coherence and addressing institutional barriers are essential steps in realizing this potential. By overcoming these obstacles, emerging economies can make significant contributions to global environmental goals and lay the foundation for a more sustainable future. The research provides valuable insights for policymakers, investors, and stakeholders, facilitating informed decision-making and driving the transition towards a more resilient and sustainable global economy.
Anam Khan, Disha Arora, Mansi Kumari Meena. Unlocking trends in green bonds: Navigating opportunities and challenges for sustainable development in E7 countries. Int J Finance Manage Econ 2025;8(1):81-88. DOI: 10.33545/26179210.2025.v8.i1.453