A European climate bond
Files
Publication date
2025-04
Authors
Monasterolo, Irene
Pacelli, Antonia
Pagano, Marco
Russo, Carmine
Editors
Advisors
Supervisors
Document Type
Article
Metadata
Show full item recordCollections
License
taverne
Abstract
Europe faces a large climate investment gap. To fill this gap, we propose the joint issuance of European climate bonds. These bonds would be funded by selling greenhouse gas emission allowances through the Emissions Trading System, extended to cover all sectors. Access to the resulting funds would be conditional on countries’ performance in implementing climate projects. European climate bonds would meet the demand for a safe, liquid and green asset, while accelerating climate investment, increasing its resilience to sovereign crises and the greening of both investors’ portfolios and monetary policy.
Keywords
Taverne, Economics and Econometrics, Management, Monitoring, Policy and Law, SDG 13 - Climate Action
Citation
Monasterolo, I, Pacelli, A, Pagano, M & Russo, C 2025, 'A European climate bond', Economic Policy, vol. 40, no. 122, pp. 307-339. https://doi.org/10.1093/epolic/eiae065