New Directions of Using Green Financing Instruments as a Factor of Market Development

Abstract

   The subject of the study is the use of green finance instruments in the context of sustainable development priorities to increase their liquidity and develop relevant markets.

   The purpose of the work is to identify the possibilities of using Green bonds as investment and reserve assets by conservative investors.

   The article analyzes the state and trends in the development of green finance markets and proposes a solution to the problem of increasing the liquidity of Green bonds based on new directions of their use, supported by general scientific research methods in the framework of comparative, logical and statistical analysis, as well as graphical visualization and interpretation of data. The conducted research has shown that the interest in green financing instruments is due to the transformation of the goals and priorities of private and public investors and reflects the need for sustainable development and environmental conservation. In terms of profitability and reliability, Green bonds meet the criteria set for asset placement by conservative investors, such as banks and insurance companies. The use of Green bonds provides the necessary diversification of the securities portfolio, improvement of its structure, reduction of risks, increases the confidence of investors and creditors. It is concluded that Green bonds denominated in Euros should be used to improve the structure and quality of international assets of central banks in conditions of falling confidence in the US dollar.