A European climate bond

Irene Monasterolo; Antonia Pacelli; Marco Pagano; Carmine Russo

doi:10.1093/epolic/eiae065

A European climate bond

Irene Monasterolo, Antonia Pacelli, Marco Pagano^*, Carmine Russo

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

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.

Original language	English
Pages (from-to)	307-339
Number of pages	33
Journal	Economic Policy
Volume	40
Issue number	122
Early online date	20 Dec 2024
DOIs	https://doi.org/10.1093/epolic/eiae065
Publication status	Published - Apr 2025

Bibliographical note

Publisher Copyright:
© CEPR, CESifo, Sciences Po, 2024.

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eiae065Final published version, 1.59 MBLicence: Taverne

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AU - Russo, Carmine

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A European climate bond

Abstract

Bibliographical note

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