EXTERNAL REVIEWS ON THE GREEN BOND MARKET: INTERNATIONAL PRACTICE AND INSIGHTS FOR UKRAINE
DOI:
https://doi.org/10.15407/economyukr.2024.06.071Keywords:
green bonds; green bond market; green bond issuers; green bond verifiers; green bond standard; external reviews on the green bond market; accreditation of green bond verifiers.Abstract
The practice of conducting external reviews on the green bond market has been studied. It has been established that there are several levels and types of such reviews. They are conducted both before the issuance of green bonds, with a focus on confirming compliance with the main internationally established principles, and after – with an assessment of the actual use of raised funds and the expected environmental impact. External reviews may vary in scope and types of organizations that conduct them. During external reviews on the green bond market, conflicts of interest between all organizations must be prevented.
International standards, guidelines and instructions, which are recommended to be followed by the issuers and verifiers of green bonds, have been analyzed. The requirements for the professional qualification of verifiers and for conducting standardized procedures are described. It has been established that there are a number of professional, ethical and industry standards that external review service providers in the market must meet. The EU approaches to regulating such services are characterized. Internal green bond market in the EU is planned to be protected through standardized procedures and accreditation of green bond verifiers.
It is revealed that there are no regulatory oversight mechanisms for the activities of external verification service providers in Ukraine’s domestic green bond market. Conceptual proposals for establishing the regime of accreditation of verifiers and support for green bond issuers in Ukraine have been drawn up, which will make it possible to reduce the cost of external reviews on the local market.
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