Systematic literature review reveals green bonds enhance ESG scores in supporting circular economy initiatives, highlighting challenges in financing and governance.
Key Points
Green bonds significantly support environmentally friendly projects, improving ESG scores and corporate reputations.
Sustainable finance integration can enhance investment governance and promote structural transformation in economies.
Challenges such as greenwashing and low finance literacy hinder the circular economy's growth, limiting feasible projects.
Strengthening policies and fostering multi-stakeholder collaboration are crucial for establishing a green finance ecosystem.