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Abstract

Abstract

Green bonds have risen as a crucial financial tool for mobilizing capital for environmentally sustainable projects, aiming to address climate change and promote sustainable development. In Egypt, despite being a pioneer in issuing sovereign green bonds, the corporate bond market remains in its early stages, with relatively low issuance of corporate green bonds compared to other emerging economies. This study focuses on identifying the challenges facing the domestic corporate green bond market. Through interviews with eleven market participants, the analysis revealed general challenges that encompass the entire bond market, including lack of awareness, limited engagement of retail investors, lengthy and complex issuance processes, high costs, challenges in the secondary market, and the impact of the current economic situation on the debt market. Additionally, specific challenges regarding the green bond market were identified. These challenges included insufficient awareness and mislabeling of green issuances, issuer unpreparedness and lack of internal capacity, absence of clear guidelines and local taxonomy, limited pool of eligible assets, high costs of verifiers and additional reporting requirements, regulatory constraints, and lack of incentives. The study concludes with a set of policy recommendations, including designing capacity-building programs for all market participants’, involvement of local verifiers to reduce third-party verification costs, and developing incentive packages for green bond issuers.

School

School of Global Affairs and Public Policy

Department

Public Policy & Administration Department

Degree Name

MA in Public Policy

Graduation Date

Fall 2-1-2024

Submission Date

9-14-2023

First Advisor

Ghada Barsoum

Committee Member 1

Laila El Baradei

Committee Member 2

Rana Hendy

Extent

108 p.

Document Type

Master's Thesis

Institutional Review Board (IRB) Approval

Approval has been obtained for this item

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