Digitalni repozitorijum
Univerziteta u Beogradu
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GREEN AND CAT BONDS AS INSTRUMENTS FOR MANAGING CLIMATE RISKS
Trifunović, Dejan
Mitrović, Đorđe
Climate change caused by global warming increases the frequency and severity of catastrophic events. In this paper, we will discuss how green projects can be financed by green bonds to mitigate these risks. Before studying green bonds, we should take an outlook on green projects. Green projects represent initiatives to promote environmental sustainability through renewable energy, conservation efforts, and sustainable development practices. These projects are not mere environmental luxuries but necessities for mitigating the harmful effects of climate change. Climate change, a complex global phenomenon, is intricately linked to our economic models. Predominantly linear economic models, characterised by a “take-make-dispose” approach, have significantly contributed to environmental degradation. In response, the concept of the circular economy emerges as a sustainable alternative, focusing on minimising waste and maximising the reuse and recycling of resources. Green projects span a wide range of sectors, including but not limited to renewable energy generation (like solar and wind power), sustainable agriculture (focusing on eco-friendly farming practices), and green building designs (which emphasise energy efficiency and minimal environmental impact). The significance of these projects lies in their capacity to reduce greenhouse gas emissions, one of the primary drivers of climate change. Transition to renewable energy sources can significantly diminish our reliance on fossil fuels, reducing carbon emissions. In agriculture, sustainable practices such as crop rotation, organic farming, and efficient water usage help reduce food production’s environmental footprint. These initiatives collectively contribute to a holistic approach to combating climate change. The circular economy is a regenerative economic model designed to separate economic growth from intensive resource use and degradation of the environment. The circular economy is based on three principles252. First, products are designed and optimised for a cycle of disassembly and reuse, substantially minimising waste and resource consumption. Second, products and materials should be used with extended the life cycle through repair, refurbishment, and recycling, thereby maintaining the value of products for as long as possible. Third, the circular economy encourages practices that restore natural systems, such as returning valuable nutrients to the soil through organic farming.
This research is supported by the Ministry of Science, Technological Development and Innovation of the Republic of Serbia by the Decision on the transfer of funds to finance the scientific research work of teaching staff at faculties in 2024, No. 451-03-65/2024-03/200097 of 5 February 2024.
engleski
2024
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Creative Commons CC BY-NC-ND 4.0 - Creative Commons Autorstvo - Nekomercijalno - Bez prerada 4.0 International License.
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Keywords: green bonds, climate risks