XF-960041N-I Certification against greenwashing in nascent bond markets: lessons from African ESG bonds
Abstract
Eurasian Economic Review (2024) 14:149–173 https://doi.org/10.1007/s40822-023-00257-5 ORIGINAL PAPER Certification against greenwashing in nascent bond markets: lessons from African ESG bonds Samuel Mutarindwa1 · Dorothea Schäfer2,3,5 · Andreas Stephan4 Received: 15 September 2023 / Revised: 9 December 2023 / Accepted: 19 December 2023 / Published online: 16 February 2024 © The Author(s) 2024 Abstract Africa is one of the most vulnerable continents to climate change. Climate and sus- tainability-linked bonds can provide funding to African governments and corpora- tions for projects that help to mitigate climate change, combat biodiversity loss, and foster sustainable development. However, less than 0.3% of the global environmen- tal, social, governance (ESG) bond issuance volume is devoted to projects in Africa. Based on the entire universe of 107 African ESG bonds from 42 governmental and corporate issuers over the period 2010–2023, this paper establishes that ESG bonds provide benefits to both issuers and investors in terms of lower spreads and volatil- ity. Our econometric results highlight that greenwashing is a valid concern for inves- tors in African ESG bonds and certification of ESG bonds makes a difference vis- à-vis the self-labeling of green bonds. Non-certified ESG bonds do not offer similar benefits compared to certified ones. Green macro-financial policy and suitable regu- lation to prevent greenwashing can foster African ESG-bond markets. Keywords Africa · …
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People Cited in This Document
- Samuel Mutarindwa author Mountains of the Moon University
- Dorothea Schäfer author DIW Berlin
- Andreas Stephan author Linnaeus University
How to Cite This Record
Use the XFID in citations to create a stable, permanent reference that resolves to this registry entry regardless of the source URL.
Springer (Eurasian Economic Review) (2024). Certification against greenwashing in nascent bond markets: lessons from African ESG bonds. XFID: XF-960041N-I. Retrieved from https://xframework.id/XF960041NI
XF-960041N-I