Austrian Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK)
2024
Green finance can reduce greenhouse gas emissions by up to four per cent – without shrinking the economy and significantly losing jobs. This is the result of a new study we conducted on behalf of the Austrian Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK).
The study focused on the question of the extent to which green finance instruments can serve climate protection and what economic effects can be expected for Austria. The study was limited to corporate bonds.
The study was carried out against the backdrop of the Green Finance Agenda, which was developed by the BMK together with the Federal Ministry of Finance (BMF). The agenda aims to promote private-sector financing of climate action and a sustainable economy. It also aims to help manage climate-related risks and create transparency and a long-term perspective on the capital market.
The study shows that for Austria,
Assuming that only bonds issued by green companies are in demand, the calculated effects represent an upper limit: they show the maximum emission reduction that green finance can achieve in the bond market. However, this alone is not enough to achieve Austria's reduction targets. However, since the economic costs are low, green finance can usefully complement funding instruments and regulatory rules.
For the study, we carried out a model-based scenario comparison using our self-developed agent-based simulation model LABS.
The following were compared:
To the study (PDF, in German)
More information (BMK website)
Project team: Dr Michael Böhmer, Dr Almut Kirchner, Dr Johannes Kriebel, Jan Limbers, Hauke Toborg
Latest update: 22.11.2024
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