HomeAbstract of 6th-ccgconfGreenium in Sovereign Green Bonds- a Tool to Achieve the Sustainable Development Goals in the East and South Asian Nations

Greenium in Sovereign Green Bonds- a Tool to Achieve the Sustainable Development Goals in the East and South Asian Nations

  • Nov 19, 2025
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Abstract Book of the 6th World Conference on Climate Change and Global Warming

Year: 2025

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Greenium in Sovereign Green Bonds- a Tool to Achieve the Sustainable Development Goals in the East and South Asian Nations

Saugat Das, Dr. Piyush Kumar Singh

ABSTRACT:

Green Bonds have the prospective to narrow down a sovereign’s fiscal deficits at comparable lower yields for the successful accomplishment of the Sustainable Development Goals (SDGs) by the year 2030. This study examines the existence of greenium in sovereign green bond markets by analysing the yield differences between green and traditional sovereign bonds while attempting to draw a linkage between the proceeds from green bond issuances with the SDGs, viz. Clean Water and Sanitation (SDG 6), Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), Climate Action (SDG 13) and Life on Land (SDG 15). This article has the potential to forward the green bond literature in the East and South Asian geographical domain by developing a baseline econometric relationship between green bonds v/s SDGs using advanced machine learning algorithms and decomposing yields into determinants such as green bond status, maturity, and bond-specific attributes. The model accounts for jurisdictional and temporal heterogeneity through fixed-effects regression to ensure robust estimation. The results provide empirical evidence on the pricing dynamics of green bonds in sovereign markets, offering insights into the role of greenium in sustainable finance and its implications for sovereign bond issuance strategies. This, in turn supports the view that more number of nations are planning their own sovereign climate bond issuances as part of the Paris Climate Agreement and other commitments related to global warming.

Keywords: Greenium, Paris Agreement, Sovereign Green Bonds, Sustainable Development Goals, Sustainable Finance