The Paris Agreement, signed in 2015, sets ambitious goals for diminishing greenhouse gas emissions and restricting the rise in global temperature to achieve a less carbon-intensive and climate-resilient global economy. The Paris Agreement marked a defining moment in the worldwide response to global warming and has significantly affected the financial sector. Given this background, this research explores the effects of carbon risk on the cost of debt (CoD) in 1428 listed firms across seven economies from 2011 to 2020. The paper also reflects the post-Paris Agreement's involvement and the ESG factors' moderating effect in the empirical models. The study finds a significant impact of carbon risk on CoD following the implementation of the Paris Agreement. Notably, companies with higher carbon risk face higher borrowing rates. However, the effect of ESG on moderating the relationship between carbon risk and CoD is found to be insignificant. Further analyses confirm this finding, as individual pillars of ESG (governance and social aspects) also show insignificant moderating effects.

中文翻译：

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碳风险对 G7 经济体上市公司债务成本的影响：《巴黎协定》的作用


2015 年签署的《巴黎协定》为减少温室气体排放和限制全球气温上升设定了雄心勃勃的目标，以实现碳密集度较低且气候适应力强的全球经济。《巴黎协定》标志着全球应对全球变暖的决定性时刻，并对金融业产生了重大影响。在此背景下，本研究探讨了 2011 年至 2020 年碳风险对 7 个经济体的 1428 家上市公司的债务成本 （CoD） 的影响。本文还反映了后《巴黎协定》的参与和 ESG 因素在实证模型中的调节作用。该研究发现，在实施《巴黎协定》后，碳风险对 CoD 产生了重大影响。值得注意的是，碳风险较高的公司面临更高的借款利率。然而，发现 ESG 对调节碳风险与 CoD 之间关系的影响并不显著。进一步的分析证实了这一发现，因为 ESG 的各个支柱（治理和社会方面）也显示出微不足道的调节作用。