GREEN BONDS AND OPPORTUNITIES FOR ENSURING FINANCIAL STABILITY

Abstract

In recent years, green bonds have emerged as one of the most effective financial instruments for promoting sustainable development and addressing environmental challenges. This thesis explores the growing relevance of green bonds in global financial markets and their role in enhancing financial stability. It evaluates the mechanisms through which green bonds contribute to long-term investment security, reduce environmental risks, and support the transition to a green economy. The study also examines the potential of green bonds to diversify financial portfolios, attract environmentally conscious investors, and reduce systemic financial risks associated with climate change. Based on case studies and empirical data, the thesis highlights best practices and policy recommendations to support the expansion of the green bond market while strengthening financial systems.