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A primer on green finance: From wishful thinking to marginal impact

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  • Krahnen, Jan Pieter
  • Rocholl, Jörg
  • Thum, Marcel

Abstract

We raise some critical points against a naïve interpretation of "green finance" products and strategies. These critical insights are the background against which we take a closer look at instruments and policies that might allow green finance to become more impactful. In particular, we focus on the role of a taxonomy and investor activism. We also describe the interaction of government policies with green finance practice - an aspect, which has been mostly neglected in policy debates but needs to be taken into account. Finally, the special case of green government bonds is discussed.

Suggested Citation

  • Krahnen, Jan Pieter & Rocholl, Jörg & Thum, Marcel, 2021. "A primer on green finance: From wishful thinking to marginal impact," SAFE White Paper Series 87, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:87
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    Cited by:

    1. Hakenes, Hendrik & Schliephake, Eva, 2022. "Responsible Investment and Responsible Consumption," VfS Annual Conference 2022 (Basel): Big Data in Economics 264004, Verein für Socialpolitik / German Economic Association.
    2. Jens Teubler & Sebastian Schuster, 2022. "Causal Strands for Social Bonds—A Case Study on the Credibility of Claims from Impact Reporting," Sustainability, MDPI, vol. 14(19), pages 1-29, October.
    3. Krahnen, Jan Pieter, 2023. "Welche Rolle spielt die Finanzwirtschaft im Angesicht des Klimawandels?," SAFE Policy Letters 101, Leibniz Institute for Financial Research SAFE.
    4. Hendrik Hakenes & Eva Schliephake, 2021. "Responsible Investment and Responsible Consumption," ECONtribute Discussion Papers Series 134, University of Bonn and University of Cologne, Germany.

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    More about this item

    Keywords

    Green Finance; Climate Change; Sustainability; Taxonomy; ESG;
    All these keywords.

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