Does Sustainable Finance Regulation Play a Role in the “Greening” of Capital Markets?
Robust regulatory frameworks are important for developing healthy capital markets. Most current research ends that sustainable finance regulation serves as a backbone for the development of sustainable bond markets. Conversely, some argue that such regulation is not essential for effective greening of capital markets. This Brief presents results from a novel global sustainable Finance regulatory data set. Worldwide, adoption of sustainable Finance regulation remains low. Yet, there is a strongpositive relationship between the number of issued corporate green bonds and (1) the presence of sustainability factors in stock markets’ regulatory frameworks, (2) having sustainability reporting as a listing rule on a local securities exchange, (3) regulatory guidance on sustainability reporting, and (4) issuance of annual sustainability reports by securities exchanges or regulatory agencies.
| Main Authors: | , , |
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| Format: | Brief biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2023-08-03
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| Subjects: | SUSTAINABLE FINANCE REGULATIONS, GREENING, CAPITAL MARKETS, |
| Online Access: | http://documents.worldbank.org/curated/en/099714208022336419/IDU06895913c0ec5204ba608c7e0d2e7ccdbd214 https://openknowledge.worldbank.org/handle/10986/40148 |
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| Summary: | Robust regulatory frameworks are
important for developing healthy capital markets. Most
current research ends that sustainable finance regulation
serves as a backbone for the development of sustainable bond
markets. Conversely, some argue that such regulation is not
essential for effective greening of capital markets. This
Brief presents results from a novel global sustainable
Finance regulatory data set. Worldwide, adoption of
sustainable Finance regulation remains low. Yet, there is a
strongpositive relationship between the number of issued
corporate green bonds and (1) the presence of sustainability
factors in stock markets’ regulatory frameworks, (2) having
sustainability reporting as a listing rule on a local
securities exchange, (3) regulatory guidance on
sustainability reporting, and (4) issuance of annual
sustainability reports by securities exchanges or regulatory agencies. |
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