Research article

Private governance schemes for green bond standard: influence on public authorities’ policy making

  • Received: 18 February 2020 Accepted: 09 March 2020 Published: 11 March 2020
  • JEL Codes: G38, L15, L33, L38, O13, O44, P48, Q01, Q56

  • This paper considers the guiding impact of private governance schemes on public authorities' policy-making through a case study on green bond standard. Based on theoretical review of the institutional interplay and private governance scheme, two hypotheses are proposed in this paper: horizontal interplay between transnational private governance schemes can make a particular framework prevalent in given governance area; and prevalent private governance scheme can influence policy making of public authorities through vertical institutional interplay. The argument in this paper supports that internationally-accepted private governance schemes could be in a position to influence policy-making by public authorities. Horizontal interplay in the form of alignment between the Green Bond Principles (GBP) and other private green bond standards reinforces the credibility of the overlapping elements of the private standards. As for vertical level, this paper finds that public authorities at national and regional levels take advantage of the private governance scheme, especially GBP, when developing their own standards and policy frameworks. Private institution's expertise on green bond standards effectively function to help develop coherent green bond standards globally by helping with public authorities' policy development. GBP eventually serves as a model regulation for policy makers as public authorities regard them as market best practice. This further strengthens the credibility of GBP since private governance schemes could attract more users by making it clear that those voluntary private standards are linked with standards and policy frameworks created by public authorities.

    Citation: Toyo Kawabata. Private governance schemes for green bond standard: influence on public authorities’ policy making[J]. Green Finance, 2020, 2(1): 35-54. doi: 10.3934/GF.2020003

    Related Papers:

  • This paper considers the guiding impact of private governance schemes on public authorities' policy-making through a case study on green bond standard. Based on theoretical review of the institutional interplay and private governance scheme, two hypotheses are proposed in this paper: horizontal interplay between transnational private governance schemes can make a particular framework prevalent in given governance area; and prevalent private governance scheme can influence policy making of public authorities through vertical institutional interplay. The argument in this paper supports that internationally-accepted private governance schemes could be in a position to influence policy-making by public authorities. Horizontal interplay in the form of alignment between the Green Bond Principles (GBP) and other private green bond standards reinforces the credibility of the overlapping elements of the private standards. As for vertical level, this paper finds that public authorities at national and regional levels take advantage of the private governance scheme, especially GBP, when developing their own standards and policy frameworks. Private institution's expertise on green bond standards effectively function to help develop coherent green bond standards globally by helping with public authorities' policy development. GBP eventually serves as a model regulation for policy makers as public authorities regard them as market best practice. This further strengthens the credibility of GBP since private governance schemes could attract more users by making it clear that those voluntary private standards are linked with standards and policy frameworks created by public authorities.


    加载中


    [1] Abbott KW (2012) The transnational regime complex for climate change. Environ Planning C Gov Policy 30: 571-590. doi: 10.1068/c11127
    [2] ACMF (2017) ASEAN Green Bond Standards. Available from: http://www.theacmf.org/ACMF/upload/GREENBONDACMF.pdf.
    [3] Andrade J, Puppim de Oliveira JA (2015) The Role of the Private Sector in Global Climate and Energy Governance. J Bus Ethics 130: 375-387. doi: 10.1007/s10551-014-2235-3
    [4] Andonova LB, Betsill MM, Bulkeley H (2009) Transnational Climate Governance. Global Environ Politics 9: 52-73. doi: 10.1162/glep.2009.9.2.52
    [5] Ayling J, Gunningham N (2017) Non-state Governance and Climate Policy: The Fossil Fuel Divestment Movement. Climate Policy 17: 131-149. doi: 10.1080/14693062.2015.1094729
    [6] Bachelet JM, Becchetti L, Stefano M (2019) The Green Bonds Premium Puzzle: The Role of Issuer Characteristics and Third-Party Verification. Sustainability 11: 1-22. doi: 10.3390/su11041098
    [7] Bernstein S, Cashore B (2007) Can non-state global governance be legitimate? An analytical framework. Regul Gov 1: 347-371. doi: 10.1111/j.1748-5991.2007.00021.x
    [8] Biermann F (2007) 'Earth system governance' as a crosscutting theme of global change research. Global Environ Change 17: 326-337. doi: 10.1016/j.gloenvcha.2006.11.010
    [9] Biermann F, Pattberg P (2008) Global Environmental Governance: Taking Stock, Moving Forward. Annu Rev Env Resour 33: 277-294. doi: 10.1146/annurev.environ.33.050707.085733
    [10] Biermann F, Pattberg P, van Asselt H, et al. (2009) The fragmentation of global governance architectures: a framework for analysis. Global Environ Politics 9: 14-40. doi: 10.1162/glep.2009.9.4.14
    [11] Bulkeley H (2005) Reconfiguring environmental governance: towards a politics of scales and networks. Political Geogr 24: 875-902. doi: 10.1016/j.polgeo.2005.07.002
    [12] Büthe T (2010a) Private Regulation in the Global Economy: A (P)Review. Bus Politics 12: 1-38.
    [13] Cashore B (2002) Legitimacy and the Privatization of Environmental Governance: How Non-State Market-Driven (NSMD) Governance Systems Gain Rule-Making Authority. Governance 15: 508-529. doi: 10.1111/1468-0491.00199
    [14] CBI (2018a) Green Bonds Policy: Highlights from 2017. Available from: https://www.climatebonds.net/files/reports/cbi-policyroundup_2017_final_3.pdf.
    [15] CBI (2018b) ASEAN Green Finance State of the Market. Available from: https://www.climatebonds.net/resources/reports/asean-green-finance-state-market-2018.
    [16] CBI & CCDC (2018) China Green Bond Market 2017. Available from: https://www.climatebonds.net/files/files/China_Annual_Report_2017_English.pdf.
    [17] CBI (2019) Climate Bonds Taxonomy. Available from: https://www.climatebonds.net/files/files/CBI_Taxonomy_Tables-Oct19_Final.pdf.
    [18] CBI & CCDC (2019) China Green Bond Market 2018. Available from: https://www.climatebonds.net/resources/reports/china-green-bond-market-2018.
    [19] CBI & IISD (2015) Growing a green bonds market in China: Key recommendations for policymakers in the context of China's changing financial landscape. Available from: https://www.climatebonds.net/files/files/Growing%20a%20green%20bonds%20market%20in%20China.pdf.
    [20] Chan S, van Asselt H, Hale T, et al. (2015) Reinvigorating international climate policy: a comprehensive framework for effective nonstate action. Global Policy 6: 466-473. doi: 10.1111/1758-5899.12294
    [21] Chen CJ, Srinidhi B, Su X (2014) Effect of auditing: Evidence from variability of stock returns and trading volume. China J Accounting Res 7: 223-245. doi: 10.1016/j.cjar.2014.11.002
    [22] CICERO (2016) Framework for CICERO's 'Second Opinions' on green bond investments. Available from: https://cicero.oslo.no/en/posts/single/CICERO-second-opinions.
    [23] Cutler CA, Haufler V, Porter T (1999) Private Authority and International Affairs, Albany: SUNY Press.
    [24] Cutler CA (2009) Private international regimes and interfirm cooperation. The Emergence of Private Authority in Global Governance, Cambridge: Cambridge University Press, 23-40.
    [25] Dai W, Kidney S (2016) Climate Bonds Initiative International Institute for Sustainable Development. Aavailable from: https://www.climatebonds.net/resources/Roadmap-for-China/April/2016/Paper1.
    [26] Dingwerth K (2008) Private transnational governance and the developing world: A comparative perspective. Int Stud Q 52: 607-634. doi: 10.1111/j.1468-2478.2008.00517.x
    [27] EC (2018) Action Plan: Financing Sustainable Growth. Available from: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0097&from=EN.
    [28] EC (2019a) Report of the Technical Expert Group (TEG) subgroup on Green Bond Standard Proposal for an EU Green Bond Standard: Interim Report. Available from: https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/190306-sustainable-finance-teg-interim-report-green-bond-standard_en_0.pdf.
    [29] EC (2019b) Report on EU Green Bond Standard. Available from: https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/190618-sustainable-finance-teg-report-green-bond-standard_en.pdf.
    [30] Flammer C (2018) Corporate Green Bonds. Available from: https://doi.org/10.2139/ssrn.3125518.
    [31] Gehring T, Oberthür S (2011) Institutional Interaction: Ten Years of Scholarly Development. Managing Institutional Complexity, Cambridge: MIT Press, 25-58.
    [32] GFS (2015) Preparation Instructions on Green Bond Endorsed Project Catalogue. Available from: https://www.bourse.lu/documents/brochure-GB_endorsed_project_catalogue_2015.pdf.
    [33] Green JF (2014) Rethinking private authority: agents and entrepreneurs in global environmental governance, Princeton, New Jersey: Princeton University Press.
    [34] Green JF, Auld G (2017) Unbundling the regime complex: the effects of private authority. Transnational Environ Law 6: 1-28. doi: 10.1017/S2047102517000012
    [35] Ehlers T, Packer F (2017) Green Bond Finance and Certification. BIS Quarterly Review September 2017. Available from: https://ssrn.com/abstract=3042378.
    [36] Hall RB, Biersteker TJ (2002) The emergence of private authority in the international system. The Emergence of Private Authority in Global Governance, Cambridge: Cambridge University Press, 3-22. Available from: https://doi.org/10.1017/CBO9780511491238. doi: 10.1017/CBO9780511491238.002
    [37] Hickmann T (2017) The Reconfiguration of Authority in Global Climate Governance. Int Stud Rev 19: 430-451. doi: 10.1093/isr/vix037
    [38] Hicks BL (1999) Treaty Congestion in International Environmental Law: The Need for Greater International Coordination. Unive Richmond Law Rev 32: 1643-41674.
    [39] HKEX (2018) The green bond trend: Global, Mainland China and Hong Kong. Available from: https://www.hkex.com.hk/-/media/HKEX-Market/News/Research-Reports/HKEx-Research-Papers/2018/CCEO_GreenBonds_201812_e.pdf?la=en.
    [40] IFC (2016) Mobilizing Private Climate Finance-Green Bonds and Beyond. Available from: https://openknowledge.worldbank.org/bitstream/handle/10986/30351/110881-BRI-EMCompass-Note-25-Green-Bonds-FINAL-12-5-PUBLIC.pdf?sequence=1&isAllowed=y.
    [41] IFC (2018) Creating Green Bond Markets-Insights, Innovations, and Tools from Emerging Markets. Available from: https://www.ifc.org/wps/wcm/connect/55e5e479-b2a8-41a6-9931-93306369b529/SBN+Creating+Green+Bond+Markets+Report+2018.pdf?MOD=AJPERES.
    [42] Info Barcelona (2017) First issue of green and social bonds for municipal funding. Available from: https://www.barcelona.cat/infobarcelona/en/first-issue-of-green-and-social-bonds-for-municipal-funding_595425.html.
    [43] Kent A (2014) Implementing the principle of policy integration: institutional interplay and the role of international organizations. Int Environ Agreements 14: 203-224. doi: 10.1007/s10784-013-9224-3
    [44] Keohane RO (1989) "Neoliberal Institutionalism: A Perspective on World Politics," In Keohane, R., O. International Institutions and State Power: Essays in International Relations Theory, Boulder CO: Westview Press.
    [45] Keohane RO, Victor DG (2010) The Regime Complex for Climate Change. Discussion Paper 2010-33, Cambridge, Mass.: Harvard Project on International Climate Agreements, January 2010. Available from: https://www.belfercenter.org/sites/default/files/legacy/files/Keohane_Victor_Final_2.pdf.
    [46] Kollmuss A, Zink H, Polycap C (2008) Making sense of the voluntary carbon market: A comparison of carbon offset standards. Available from: https://mediamanager.sei.org/documents/Publications/SEI-Report-WWF-ComparisonCarbonOffset-08.pdf.
    [47] Mathews JA, Kidney S (2014) Climate bonds: mobilizing private financing for carbon management. Carbon Manage 1: 9-13. doi: 10.4155/cmt.10.15
    [48] Moody's (2019) Corporate issuers drive strong global green bond volume in Q1 2019. Available from: https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Public-research-resources/Corporate-issuers-drive-strong-global-green-bond-volume-in-Q1-2019-220719.pdf.
    [49] Oberthür S, Gehring T (2006) Institutional interaction in global environmental governance, Cambridge MA: MIT Press.
    [50] OECD (2015) Green Bonds Mobilising the debt capital markets for a low-carbon transition, Paris: OECD Publishing.
    [51] OECD (2017) Mobilising Bond Markets for a Low-Carbon Transition, Green Finance and Investment, Paris: OECD Publishing.
    [52] O'Neill K (2013) Vertical Linkages and Scale. Int Stud Rev 15: 571-573.
    [53] Orsini A, Morin JF, Young OR (2013) Regime Complexes: A Buzz, a Boom, or a Boost for Global Governance? Global Gov 19: 27-39. doi: 10.1163/19426720-01901003
    [54] Park SK (2018) Investors as regulators: Green bonds and the governance challenges of the sustainable finance evolution. Stanford J Int Law 54: 1-47.
    [55] Paula C, Carola B (2016) Climate Finance after the Paris Agreement: new directions or more of the same? Available from: https://doi.org/10.5167/uzh-137944.
    [56] PBoC & UNEP (2015) Establishing China's Green Financial System. Available from: https://www.cbd.int/financial/privatesector/china-Green%20Task%20Force%20Report.pdf.
    [57] Pham L (2016) Is it risky to go green? A volatility analysis of the green bond market. J Sust Financ Investment 6: 263-291.
    [58] Raustiala K, Victor DG (2004) The Regime Complex for Plant Genetic Resources. Int Organ 58: 277-309. doi: 10.1017/S0020818304582036
    [59] Reichelt H, Keenan C (2017) The Green Bond Market: 10 years later and looking ahead. Available from: http://pubdocs.worldbank.org/en/554231525378003380/publicationpensionfundservicegreenbonds201712-rev.pdf.
    [60] Ren S, Li X, Yuan B, et al. (2018) The effects of three types of environmental regulation on eco-efficiency: A cross-region analysis in China. J Clean Prod 173: 245-255. doi: 10.1016/j.jclepro.2016.08.113
    [61] Richardson BJ (2009) Climate Finance and Its Governance: Moving to a Low Carbon Economy Through Socially Responsible Financing? Int Comp Law Q 58: 597-626. doi: 10.1017/S0020589309001213
    [62] Richardson BJ (2010) Reforming Climate Finance Through Investment Codes of Conduct. Wisconsin Int Law J 27: 483-515.
    [63] Richardson BJ (2017) Divesting from Climate Change: The Road to Influence. Law Policy 39: 325-348. doi: 10.1111/lapo.12081
    [64] Rose P (2018) Certifying the "Climate" in Climate Bonds. Legal Studies Working Paper Series No. 458. Available from: https://ssrn.com/abstract=3243867.
    [65] S&P (2018) Frequently Asked Questions: Green Evaluations And Transaction Alignment With The Green Bond Principles 2018. Available from: https://www.spratings.com/documents/20184/4756601/Green+Evaluations+And+Transaction+Alignment+With+The+Green+Bond+Principles+2018%2C+July+24+2018.pdf/8295714b-4eab-4c35-86e4-835ccf738902.
    [66] SEBI (2016) Disclosure Requirements for Issuance and Listing Green Bonds. Available from: https://www.sebi.gov.in/sebi_data/meetingfiles/1453349548574-a.pdf.
    [67] Shishlov I, Nicol M, Cochran I (2018) Environmental integrity of green bonds: stakes, status and next steps. Available from: https://www.i4ce.org/download/environmental-integrity-of-green-bonds/.
    [68] Stokke OS (2001) The Interplay of International Regimes: Putting Effectiveness Theory to Work. Available from: https://www.files.ethz.ch/isn/100208/01-14-oss.pdf.
    [69] Strange S (1996) The Retreat of the State, Cambridge: Cambridge University Press.
    [70] SynTao Green Finance (2019) Top Ten Responsible Investment Trends in China in 2019. Available from: http://www.syntaogf.com/Menu_Page_EN.asp?ID=21&Page_ID=292.
    [71] Thistlethwaite T (2014) Private governance and sustainable finance. J Sustainable Financ Investment 4: 61-75. doi: 10.1080/20430795.2014.887348
    [72] UNEP (2019) Sustainable Finance Progress Report. Available from: http://unepinquiry.org/wp-content/uploads/2019/03/Sustainable_Finance_Progress_Report_2018.pdf
    [73] Vatn A, Vedeld P (2012) Fit, interplay, and scale: a diagnosis. Ecology and Society 17:12. Available from: http:// dx.doi.org/10.5751/ES-05022-170412. doi: 10.5751/ES-05022-170412
    [74] Wang Y, Zang R (2017) China's green bond market. International Capital Market Features, 44: 16-17.
    [75] Weiss EB (1993) International Environmental Law: Contemporary Issues and the Emergence of a New World Order. Georgetown Law J 675: 675-710.
    [76] Whiley A (2018) Chinese regulators introduce supervisory scheme for green bond verifiers - Further step in building market frameworks. Available from: https://www.climatebonds.net/2018/01/chinese-regulators-introduce-supervisoryscheme-green-bond-verifiers-further-step-building.
    [77] World Bank (2015) Innovative Finance for Development Solutions. Available from: http:// siteresources.worldbank.org/CFPEXT/Resources/IF-for-Development-Solutions.pdf.
    [78] Young OR (1996) Institutional Linkages in International Society: Polar Perspectives. Global Gov 2: 1-24. doi: 10.1163/19426720-002-01-90000002
    [79] Young OR (1999) Governance in World Affairs, Ithaka, NY: Cornell University Press.
    [80] Young OR (2002) The Institutional Dimensions of Environmental Change: Fit, Interplay, and Scale, Cambridge MA: MIT Press.
    [81] Young OR, King LA, Schroeder H (2008) Institutions and environmental change: principal findings, applications, and research frontiers, Cambridge, MA: MIT Press.
    [82] Zelli F (2011) Regime Conflicts and Their Management in Global Environmental Governance, Managing Institutional Complexity: Regime Interplay and Global Environmental Change, Cambridge MA:MIT Press. 197-226.
    [83] Zelli F, Moller I, van Asselt H (2017) Institutional complexity and private authority in global climate governance: the case of climate engineering, REDD+ and short-lived climate pollutants. Environ Politics 26: 669-693. doi: 10.1080/09644016.2017.1319020
  • Reader Comments
  • © 2020 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
通讯作者: 陈斌, bchen63@163.com
  • 1. 

    沈阳化工大学材料科学与工程学院 沈阳 110142

  1. 本站搜索
  2. 百度学术搜索
  3. 万方数据库搜索
  4. CNKI搜索

Metrics

Article views(4073) PDF downloads(556) Cited by(10)

Article outline

Other Articles By Authors

/

DownLoad:  Full-Size Img  PowerPoint
Return
Return

Catalog