1. GREEN BONDS: THE SEARCH FOR A PROPER REGULATORY FRAMEWORK TO PROTECT INVESTORS AGAINST GREENWASHING.
- Author
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Narinx, Raphael
- Subjects
Disclosure (Securities law) -- Environmental aspects -- Laws, regulations and rules ,Corporate sustainability -- Environmental aspects -- Laws, regulations and rules ,Bonds -- Environmental aspects -- Purchasing -- Laws, regulations and rules ,Corporations -- Finance ,Kosher food -- Laws, regulations and rules ,Social enterprises -- Environmental aspects -- Securities -- Laws, regulations and rules ,Socially responsible investments -- Standards -- Management -- Laws, regulations and rules ,Greenwashing -- Remedies -- Laws, regulations and rules ,Stakeholder theory -- Analysis ,Contracts -- Environmental aspects -- Laws, regulations and rules ,Government regulation ,Company securities ,Company business management - Abstract
I INTRODUCTION 12 II THE PRIVATE REGULATORY FRAMEWORK FOR GREEN BONDS 15 A. Current Mechanisms Governing The Green Bond Market And Their Limitations 16 B. General Shortcomings Of Private Initiatives [...], With the rise of sustainable finance, financial products specifically dedicated to supporting the ecological transition have appeared on the market. Nevertheless, given the interest in these new financial products capable of financing the ecological transition, the fundamental question is how to regulate them and prevent the risks of misleading investors through greenwashing behaviour. Using the example of green bonds, a now very popular form of debt security whose proceeds are, in principle, allocated exclusively to the financing of green projects, this article seeks to analyze the various possible regulatory approaches to building confidence in the market and protecting investors more effectively against greenwashing. After examining the main shortcomings of private and public regulatory approaches to green bonds and their possible improvements, the article argues for empowering green bondholders through direct rights of action to protect themselves against greenwashing practices. In this regard, the paper focuses on certain tools in Canadian corporate law and the inclusion of green clauses in green bond documentation as a means of enabling bondholders to more effectively control the behaviour of issuers and seek redress in the event of greenwashing. KEYWORDS Securities Law, Green Bonds, ESG Law, Canadian Law, EU Law, Sustainable Finance
- Published
- 2024