The newest instruments of sustainable development financing

Abstract

Introduction. Conducting business activities aimed at obtaining profit without taking into account the negative impact on the social and environmental environment has led to the accumulation of problems in the specified areas. Awareness of the current situation led to the development of the concept of sustainable development and the formulation of 17 Sustainable Development Goals, the implementation of which will contribute to ensuring both economic, social and ecological dimensions of human progress. Problem Statement. Among the newest instruments aimed at financing with a positive impact on the economic, social and environmental dimensions of sustainable development, special purpose bonds (green, social, sustainable bonds, etc.) should be singled out. The purpose of the article is to determine the composition of the newest instruments of sustainable development financing, to improve their classification, and to generalize trends in their use in the world. Methods. The principles and guidelines of the International Capital Market Association for the issuance of special purpose bonds are analyzed, the methods of generalization and analysis of dynamic series are used based on the data of the International organization “Climate Bonds Initiative” about special purpose bonds. Results. The classification of special-purpose bonds was improved, in particular, the widespread features of their classification were supplemented with features based on the level of achievement of the set goals and the readiness of legislation of the issuance of special purpose bonds. The global trends as for the development of special purpose bonds were clarified, namely: the largest volume of issuance and growth rate for 2014-2021 is precisely for green bonds, which is explained by the beginning of the practice of issuing bonds with a positive impact by supranational organizations in the world precisely from the issue of green bonds; the largest volume of issuance of special purpose bonds is inherent for developed markets and, in recent years, for emerging markets; the leader of issuing of all types of these bonds during 2016-2021 is Europe; the largest specific weight of the issued special purpose bonds in the world is inherent for hard currencies: the euro and the U.S. dollar; key issuers of these bonds are financial and non-financial corporations, as well as institutions supported by the government. Conclusions The classification of special-purpose bonds has been improved, in particular, the common features of their classification have been supplemented with features based on the level of achievement of the set goals and regularity of the issue. Accordingly, it is advisable to continue to support the initiative of financial corporations regarding the issue of special purpose bonds as powerful institutional investors. This will make it possible to maintain the growing trend and strengthen financing and achievement of the Sustainable Development Goals. It is expedient to carry out the further research in this field in the direction of developing mechanisms for activating the use of the newest instruments of sustainable development financing.