Green Treasury Bond – tool of sustainable finance

Abstract

Green finance means financial solutions and investments that support environmentally friendly and sustainable economic development. Green finance includes financial activities, investments, business models enable economic growth, while minimizing environmental impacts and contributing to the fight against climate change. The rise of green financial products is motivated by several social, economic and market processes. This paper examines one tool of green financing, the Green Treasury Bond issues and its potential influencing factors in European Union comparison. The supposed influencing factors are the GDP/capita, CO2 emission/capita and market rate of long-term Treasury bond. Regression analysis was used to test the relationship of these variables in 2022. The model did not prove significant connections between the dependent and the input variables. However, filtering the database from outliers weak, positive connection was detected between the economic development and the intensity of green bond funding.