ZELENI INSTRUMENTI NA FINANSIJSKOM TRŽIŠTU
GREEN INSTRUMENTS IN THE FINANCIAL MARKET

Author(s): Jasna Zrilić
Subject(s): Economy, Energy and Environmental Studies, Financial Markets
Published by: Finrar d.o.o Banja Luka
Keywords: green bonds; concept of sustainable development; green financing; environmental risks; greenwashing; socially responsible business;
Summary/Abstract: Environmental protection and economically sustainable development are approached with great care by the governments of developed countries and they systematically adopt economic policies that are in line with ESG requirements (environmental, social, governance). In developed countries, there is a growing interest in green bonds and other financial instruments that promote sustainability and socially sustainable business. The first part of the paper presents the basic principles of the concept of sustainable development in banking as well as a review of the risks associated with climate and environmental issues. The paper further contains the elaboration of financial instruments, primarily green bonds, and other products in banks to which it is possible to incorporate elements of "green". The potential of the domestic market for investing in green bonds was pointed out. Given that there is still a trend of keeping a high level above the reserve account by the banking sector in Bosnia and Herzegovina, and that there is a possibility of some investment by the household sector in these products, it is necessary to systematically finance green projects. The role of the banking sector is significant, which can significantly contribute to the realization of sustainable development goals where, in addition to traditional products, products that contain additional components in accordance with the concept of sustainable development could be also offered such as credit lines that finance renewable energy sources or green bonds. This includes the adoption of regulations that are in line with international standards governing this area, as well as the adoption of economic policies that promote the concept of sustainable development and prescribe appropriate subsidies or incentives for green financing

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