Green debt: a systematic literature review and future research agenda

Abstract

The green debt market has become a key financing tool for (environmental) sustainability efforts. While existing reviews cover green bonds and loans, a comprehensive study that also includes sustainability-linked bonds and loans is still missing. This article addresses this gap with a PRISMA-based systematic review of 80 published studies and working papers available through March 2025. The review addresses three core themes in green debt research: (i) sustainability premiums, (ii) stock market responses, and (iii) issuers’ improvements in environmental, social and governance performance. The review concludes by highlighting new avenues for research that could deepen our understanding of green debt and promote a more holistic approach to sustainable finance.