Green Bond Market: A Study on Prospects and Challenges

Abstract

This research examines the opportunities and challenges in the green bond market, highlighting the financial institutions' role, determinants of investment decisions, and investor challenges. Based on a structured questionnaire and response analysis of 131 participants using ANOVA and T-tests, the results show that awareness of financial initiatives greatly differs with knowledge, income, and education levels but not with gender. Higher-income, better-educated, and more aware individuals exhibit higher awareness and take into consideration more factors while investing in green bonds. Issues of greenwashing and market inefficiencies are felt more acutely by these segments. The research concludes that to develop the green bond market in a sustainable manner, financial institutions need to step up education efforts, enhance transparency, and enhance market access across all socio-economic segments.