Green bonds as an instrument of sustainable transformation in the textile industry

Abstract

The textile industry is one of the most significant sectors of the global economy, yet it is also one of the largest generators of negative environmental externalities, including greenhouse gas emissions, intensive resource consumption, and waste accumulation. In the context of accelerating climate change and the transition toward sustainable economic models, sustainable finance is gaining strategic importance, with green bonds emerging as one of the key instruments for mobilizing capital toward environmentally sustainable projects. This paper aims to provide a comprehensive analysis of the role of green bonds in financing the sustainable transformation of the textile industry by integrating the theoretical framework of sustainable finance, analyzing market trends, and evaluating empirical evidence. The methodological approach includes the analysis of secondary data, comparative analysis of financial instruments, and case studies of relevant market actors. The research findings indicate that green bonds contribute to improving capital allocation toward projects that support decarbonization, circular economy practices, and more efficient resource management within the textile sector. However, their effectiveness largely depends on an appropriate regulatory framework, the level of transparency, standardization of reporting, and the integration of ESG criteria into investment processes.