No. 1538 - Green is the new black

Temi di discussione (Working papers)
by Alessandro Moro and Andrea Zaghini
July 2026
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The new Trump administration, inaugurated in January 2025, has introduced a shift in US environmental policies, withdrawing from the Paris Agreement and announcing measures aimed at increasing fossil fuel production. This paper analyses the impact of this change on the US green bond market, considering both issuance volumes and yields at issuance.

In the months following the presidential election, both the probability of issuing green bonds and the volumes issued by individual borrowers declined significantly. Moreover, the greenium (the yield differential between green and comparable conventional bonds) turned from negative to positive, signalling a marked weakening in investor demand for green bonds.

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  1. 30 July 2026
    No. 1538 - Green is the new black
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