@article{JRC121894,
	number = {KJ-AE-20-013-EN-N (online)},
	address = {Luxembourg (Luxembourg)},
	issn = {2467-2203 (online)},
	year = {2020},
	author = {Fatica S and Panzica R},
	isbn = {978-92-76-22105-0 (online)},
	publisher = {Publications Office of the European Union},
	abstract = {While green bonds are becoming increasingly popular in the corporate finance practice, little is known about their implications and effectiveness in terms of issuers’ environmental engagement. Using matched bond-issuer data, we test whether green bond issues are associated to a reduction in total and direct (scope 1) emissions of non-financial companies. We find that, compared to conventional bond issuers with similar financial characteristics and environmental ratings, green issuers display a decrease in the carbon intensity of their assets after borrowing on the green segment. The decrease in emissions is more pronounced, significant and long-lasting when we exclude green bonds with refinancing purposes, which is consistent with an increase in the volume of climate friendly activities due to new projects (‘additionality’). We also find a larger reduction in emissions in case of green bonds that have external review, as well as those issued after the Paris Agreement.
		},
	title = {Green bonds as a tool against climate change?},
	url = {},
	doi = {10.2760/24092 (online)}
}