Ecological and economic effects of green financing

Currently, all three components of sustainable development at all levels are becoming increasingly important to ensure the existence and development of states. This article is devoted to green finance, linking economic and environmental aspects of development. Green financing is a policy direction to reduce negative environmental externalities and attract investment in new technologies, which has become widespread in recent years; green bonds are one of its most important instruments. To assess the impact of issuing green bonds on the environmental component, represented by the equivalent of carbon monoxide emissions, the article was the first to apply a matching procedure to evaluate company data obtained using the Refinitiv database. The authors showed a model specification that supports the hypothesis that the issuance of green bonds has an impact on reducing carbon monoxide equivalent emissions in the long term, but the results of the logarithmic specification of this model turned out to be unstable. From the calculations presented in the article it follows, that despite the fact that the effect of issuing green bonds does not have an immediate impact on the company’s environmental performance, but in the long run it can improve their performance. It helps to raise environmental rating of companies and, in turn, can help attract investments for the development of technologies and infrastructure that ensure technological independence, the use of promising energy sources, the best available technologies, and the transport greening.