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Sustainable International Trade and Green Bonds

INSTRUCTORS

Prague University of Economics and Business

De Castro Tereza

AIM

This class aims to provide students with an integrated understanding of the links between international trade, climate change, and sustainable finance, with particular emphasis on greenhouse gas emissions embodied in international trade, and the role of green bonds for sustainable development.

The students will be able to

  • explain the link between international trade, environmental change, and greenhouse gas emissions embodied in international trade,
  • analyse GHG emissions embodied in international trade using real-world data,
  • understand why European car producers issue green bonds,
  • analyse the main risks related to the green bonds,
  • understand the concept of ESG and greenwashing.

MAIN TOPICS

  • International trade and sustainability
  • International trade and environment nexus: problems, measures and implications
  • GHG emissions embodied in international trade
  • Introduction to bonds as the source of funding for sustainable development
  • The main characteristics of green bonds
  • ESG reporting. Greenwashing
  • Case study: Green Bonds and the European Automotive Industry

TEACHING METHODOLOGY

The course combines traditional lectures clarifying the key theoretical concepts with seminars featuring hands-on analysis of OECD data on greenhouse gas emissions embodied in international trade, along with group discussions and real-world case studies of green bonds in the automotive industry.

 

DAY-BY-DAY PROGRAM

Topics Instructor
Lesson 1 International trade and sustainability: theoretical framework
International trade–environment nexus: real–world examples, policy measures, regulations and implications
Tereza De Castro
Lesson 2

Illustrative case of GHG emissions in Czech automotive industry and scopes of GHG emissions

Practical data search and analysis of GHG emissions embodied in international trade, production, and consumption, with a special focus on the automotive industry

Tereza De Castro
Lesson 3 Role of sustainable finance in funding sustainable development.
Introduction to bonds as the source of financing for companies.
The main characteristics of green bonds. ICMA Green Bond Principles.
ESG reporting. Greenwashing.
Inna Romānova
Lesson 4 Case study: Green Bonds and the European Automotive Industry Inna Romānova

 

SUGGESTED REFERENCES

Council of the European Union. (2026, January 14). Fit for 55: How does the EU intend to address the emissions outside of the EU? Infographic on the Carbon Border Adjustment Mechanism (CBAM). Retrieved from https://www.consilium.europa.eu/en/infographics/fit-for-55-cbam-carbon-border-adjustment-mechanism/

Dellink, R., Hwang, H., Lanzi, E., & Chateau, J. (2017). International trade consequences of climate change (OECD Trade and Environment Working Papers, No. 2017/01). OECD Publishing. https://doi.org/10.1787/9f446180-en

OECD (n.d.) OECD Data Explorer: Greenhouse Gas Footprint (GHGFP) indicators. Available at: https://data-explorer.oecd.org/?tm=GHGFP

Sakata, S., Aklilu, A., & Pizarro, R. (2024). Greenhouse gas emissions data: Concepts and data availability (OECD Statistics Working Papers, No. 2024/03). OECD Publishing. https://doi.org/10.1787/b3e6c074-en

Stockholm Environment Institute & Global Canopy. (n.d.). Trase: Transparency for sustainable trade and supply chains. Retrieved [date you accessed it], from https://trase.earth/

World Trade Organization. (2022). World Trade Report 2022: Climate change and international trade. WTO. https://www.wto.org/english/res_e/booksp_e/wtr22_e/wtr22_e.pdf

ICMA – Green Bond Principles

https://www.icmagroup.org/assets/documents/Sustainable-finance/2025-updates/Green-Bond-Principles-GBP-June-2025.pdf

EU Taxonomy for Sustainable Activities

https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en

The European green bond standard – Supporting the transition

https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/european-green-bond-standard-supporting-transition_en