Green Finance Publication
Dr. Maria Teresa Matriano
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Abstract
Green Finance has emerged as a critical approach to reconciling economic growth with environmental sustainability, necessitating the integration of ecological considerations into financial decision-making processes. This paradigm shift emphasizes the deployment of financial instruments such as green bonds and renewable energy investments to support climate change mitigation, biodiversity conservation, and sustainable infrastructure development globally. Major economies, including China, have pioneered green banking guidelines and specialized financial products, underscoring a strategic commitment to sustainable development. However, Green Finance encounters significant challenges, including the absence of standardized metrics for evaluating environmental impacts and regulatory inconsistencies across jurisdictions, which hinder its widespread adoption. Addressing these challenges requires collaborative efforts to establish transparent standards and resilient governance frameworks that enhance the credibility and effectiveness of green financial practices. Technological advancements and interdisciplinary research collaborations play pivotal roles in optimizing the impact and scalability of Green Finance initiatives, ensuring they contribute meaningfully to global sustainability goals. Looking forward, the future of Green Finance lies in its ability to promote inclusive and sustainable economic growth while mitigating climate-related risks. By aligning financial incentives with long-term environmental objectives, Green Finance not only fosters resilience against climate change impacts but also catalyzes broader socio-economic benefits. Ultimately, advancing Green Finance is crucial for navigating towards a resilient and environmentally responsible global economy.
Related papers
Sosnovskikh & Alam (2023) Environmental Finance and Green Banking: Contemporary and Emerging Issues
2023
Environmental nance and green banking are central drivers of the transition to a sustainable economy and essential components in solutions to climate change. This book presents the latest research on theory and practices in these interdisciplinary elds, incorporating both public and corporate nance. It introduces three parts-environmental investing and nancing, green banking and environmental policies in the public sector. The book explores the current trends, dynamics and ways forward for environmental nance and green banking, including fundamental theories (e.g., environmental Kuznets curve) and comparisons between traditional and green bond e ciency, corporate governance practices and disclosure, green central banking, climate nance, sustainable strategies, green Islamic banking, and public climate fund management in multi-country contexts. The contributors to this book highlight signi cant challenges ahead while recognizing potential opportunities, such as the revolution in green investments and trading in green bonds. This book is a welcome addition to the literature on environmental economics and nance and the economics of sustainability and climate change.
Green and Sustainable Finance in the Asia-Pacific Markets: An Introduction to the Special Issue
Asia-Pacific Financial Markets, 2022
Welcome to Green Finance: A new open access journal for sustainable research professionals
Green Finance
Environmental degradation and climate change exacerbate the challenges humanity faces. Coping with climate change, controlling environmental pollution and promoting harmonious coexistence between man and nature have become the core issues of sustainable development of the global economy and society. The Sustainable Development Goals and the Paris Agreement on Climate Change indicate a fundamental reorganization of both the financial system and the economy it serves and also imply an intensive study of the current economic and financial development model of every country. Hence, aligning finance with sustainability is subject to much research, experimentation and practice. Green Finance (GF) is an international, interdisciplinary Open Access journal devoted to publishing peer-reviewed, high quality original papers in the field of green finance, environment, and sustainability research and practice. Green Finance interprets low-carbon topics from an economic perspective, and conducts quantitative research on green finance through carbon finance, carbon information disclosure and other aspects, so as to achieve win-win between economic value and social value. GF dedicates to providing speedy review to accelerate publication process. GF will focus primarily on original research articles, but will also publish reviews, editorials, letters, and conference reports. Green Finance builds a much-needed platform for publishing original contributions and comprehensive technical review articles with a scope that spans all areas of green finance, green economics, and environmental and sustainable issues. A particular emphasis is placed on three aspects:
Green finance research around the world: a review of literature
International Journal of Green Economics, 2022
This paper reviews the existing research on green finance. It identifies the important themes in the green finance literature, particularly, the strategies to increase green financing; efforts to make green investment profitable; promoting green financing using technology and policy, the role of regulators and financial institutions in the green finance agenda, and the challenges of green financing. Several crosscountry observations about the challenges of green finance and solutions to green finance issues are documented. The findings show that green finance has the potential to make a significant difference in the environment, society and for climate change mitigation, but many challenges abound such as the lack of awareness about green finance, inconsistent definitions of green finance, lack of policy coordination for green financing, inconsistent policies, and lack of profitable incentives to investors and financial institutions who are willing to invest in climate change mitigation.
Green finance: current status, development, and future course of actions in China
Environmental Research Communications
This study explores China’s implementation of a green financial system to combat the urgent climate emergency and achieve sustainable development amid rapid industrial and urban development. The research examines the current state of green finance in China, including its development, challenges, and future directions. The study finds that China has made significant progress in establishing green finance, being a leader in green financial products like green bonds and credits. Moreover, as suggested by some literature, green finance products could lead to CO2 reductions. However, challenges still remain, such as promoting green insurance, establishing a unified green financial system, and addressing the lack of asymmetry in green financial information. This research provides an essential contribution to the growing body of knowledge on green finance, offering useful insights into China’s unique approach to sustainable development through green finance.
Green Finance: The Macro Perspective
Vierteljahrshefte zur Wirtschaftsforschung, 2019
European governments are striving to meet the ambitious goals of the Paris Climate Agreement of 2015. The German government wants to limit the CO 2 emissions so that the global temperature increase does not exceed 1.5 degrees Celsius. How this aim will be achieved concretely is still an open question. However, concrete steps must be decided upon urgently. Sustainability Policies In sustainability policy, two main concepts are under discussion: CO 2 pricing and "green investments." The latter, in turn, could be financed through the issuance of "green government bonds," i. e. bonds issued by the public purse for green investment. The Federal Ministry of Finance in Germany recently pushed forward considerations in this direction. Green bonds are also an essential part of the Green Finance policy of the EU Commission. Duco Claringbould, Martin Koch, and Philip Owen provide in their work, Sustainable finance: the European Union's approach to increasing sustainable investments and growth-opportunities and challenges, an overview of the most important current EU initiatives contributing to sustainable finance. The authors outline the need for sustainable finance to achieve EU and international policy goals and to provide a discussion of sustainable finance from a theoretical perspective. They review the most important existing EU initiatives to foster sustainable finance: the Action Plan on financing sustainable growth, the EU Emissions Trading System, and EU financial support contributing to sustainable finance. The Action Plan aims to develop an EU Green Bond Standard, as well as benchmarks for low-carbon investment strategies and climate-related reporting. The authors also provide a discussion of the challenges and political implications of current sustainable finance policies for the EU.
Green Financing: A Way to Sustainable Economic Growth
Imagine we, the people are in a queue in front of a retail shop, are to purchase a packet of fresh air. This imagination is not so far away to turn into a reality if the trend of environmental pollution is going on as it is in present. It was really amazing to us to see that a single bottle of British fresh air sold to Chinese buyers at $115. The Beijing authority announced red alert for several times to curb the city's notorious smog, a CNN report says in early of 2016. Beijing city government has issued a red alert for severely high levels of air pollution in the city for five days from December 17 to 21, 2016, as UK based newspaper The Independent says. Delhi's chief minister instructed to shut all schools in the Indian capital for three days as its citizen was struggling with choking smog in early November, 2016, as a BBC report says. Taking the environment pollution and climate change of the world into consideration what comes to our mind as the causes?-obviously first one is the concept of one-eyed way of development of the world. As we see, the main reasons of pollutions in our surroundings are – the road constructions are being ran using environment-unfriendly materials, thousands of motorized transportations are moving around which use fossil fuel and create a huge air and sound pollution, industries which create air pollution using natural fuel and emitting heavy black smoke and make water pollution through discharging industrial waste containing harmful chemicals in the rivers and water bodies, radioactive pollution due to malfunctions or improper disposal of the waste of nuclear plant, agricultural activities using pesticides and fertilizers which are made from harmful chemical substances, even making of residence for man destroying wildlife and forest, etc. Bangladesh, obviously, is not out of this list of environmentally polluted countries in the world. A World Bank's report says that Dhaka ranks highly amongst the world's major cities in terms of poor urban air quality. The report also says that county's two biggest polluters are brickfields and transport. Bricks kilns and motor vehicles contribute to 60% of fine particulate pollution in Dhaka during dry season. Rapid and unplanned industrialization is another major cause of pollution in Bangladesh. The worst example of water pollution may be the severe pollution of rivers around Dhaka city due to industries sprouted on the river bank. Chemical waste of tannery and dying factories of garments are thrown in the rivers turning these absolutely pollution. Oil spills of boats and different water vessel is also a reason for water pollution. The ship-breaking, a government declared emerging industry, is also becoming a source of threat for environment day by day through dumping explosive or inflammable gases in the coastal area particularly in Sitakundu, Chittagong. In Dhaka there are around 5,000 brick fields in operation, producing about 11 billion bricks per year. Brickfields in Bangladesh expel over 9.8 million tons of greenhouse gases into the air annually due to a combination of old technology, weak environmental legislation and enforcement and lack of corporate responsibility, WB study says. The most important fact is, to think, how long will we survive in the world making development without considering the environmental pollution? No, surely not forever. Then what can we do? Green finance concept can be a great avenue to reduce pollution and save the earth-the only place for man to live in aiding sustainable economic growth. Niklas Höhne and others, in 2012, defines green finance as a broad term that can be referred to financial investments flowing into sustainable development projects and initiatives, environmental products, and policies that encourage the development of a more sustainable economy. Green finance includes climate finance but is not limited to it. It also refers to a wider range of other environmental objectives, for example industrial pollution control, water sanitation, or biodiversity protection.
A review of studies on green finance of banks, research gaps and future directions
Journal of Sustainable Finance & Investment
With growing global concern for environmental protection, climate change and sustainable development, policymakers and researchers have recently focused on green finance. In this study, existing studies on green finance in the context of the banking sector have been reviewed with considerations on products and determinants of green finance. The content analysis approach has been used to critically analyse and summarize forty-six (46) relevant studies. The results found green securities, green investments, climate finance, carbon finance, green insurance, green credit and green infrastructural bonds as part of key green finance products of banks. Pertinent determinants the study found to be influencing green finance policies from banks include environmental and climate change policies, interest rates, religion, risks, social inclusion and social justice as well as banking regulations. In theory, this study provides a guide for further studies. The results of the study will assist banks on the key issues to consider in adopting, developing and granting green finance. ARTICLE HISTORY
A review of studies on green finance of banks, research gaps and future directions View supplementary material A review of studies on green finance of banks, research gaps and future directions
Journal of Sustainable Finance & Investment, 2021
With growing global concern for environmental protection, climate change and sustainable development, policymakers and researchers have recently focused on green finance. In this study, existing studies on green finance in the context of the banking sector have been reviewed with considerations on products and determinants of green finance. The content analysis approach has been used to critically analyse and summarize forty-six (46) relevant studies. The results found green securities, green investments, climate finance, carbon finance, green insurance, green credit and green infrastructural bonds as part of key green finance products of banks. Pertinent determinants the study found to be influencing green finance policies from banks include environmental and climate change policies, interest rates, religion, risks, social inclusion and social justice as well as banking regulations. In theory, this study provides a guide for further studies. The results of the study will assist banks on the key issues to consider in adopting, developing and granting green finance. ARTICLE HISTORY
Environmental Finance: Innovating to Save the Planet
Journal of Applied Corporate Finance
This article demonstrates that it is not only possible, but urgently necessary, to apply principles of finance and economics—efficient use of scarce capital, price transparency, and lowered transaction costs—to environmental issues. From limiting acid rain with the sulfur dioxide-allowance market to the implementation of the Clean Water Act, market-based solutions have proven consistently more effective in protecting the environment than government regulation alone. Project financing, public-private partnerships, and tradable permits have come to supplement or replace conventional command-and-control regulation and purely tax-based instruments. Tradable permit systems have been deployed to phase down use of leaded gasoline, end the use of ozone-depleting chloro-fluorocarbons, and even reduce air pollution in the smoggy skies above Los Angeles. And the United Nations Environment Program has launched a Finance Initiative as a formal means of mobilizing the financial sector to take a more active role in protecting the environment. Such an approach can minimize the aggregate costs of achieving environmental targets while providing dynamic incentives for the adoption and diffusion of greener technologies.
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Assessing the Impact of Green Finance on Environmental Sustainability
Zenodo (CERN European Organization for Nuclear Research), 2022
The research is conducted on five regions and will have a significant contribution by proving the evidence that green finance has a considerable impact on environmental sustainability. Green finance is evaluated by variables including; GDP, investment in renewable energy sources, research and development for environment friendly projects, renewable electricity output share in total electricity mix and public-private-partnership investment in renewable energy projects. The research revealed that increase in production of energy from renewable sources, increase in research and development and the evolution of public-privatepartnership investment in renewable energy causes decrease in CO2 emission. It is evidenced that green finance in renewable energy sources is necessary to achieve environmental sustainability. There is strong need to increase the green finance in renewable sources to target the vindication of global CO2 emissions. There should be cross-border trade of renewable energy in the regions/countries to mitigate CO2 emissions in the whole world. The research paper ranked regions on the basis of environmental sustainability that may help out the researchers and decision makers to entice foreign direct and private investment in such regions.
The Growth of “Green” finance at the global level in the context of sustainable economic development
E3S Web of Conferences
The paper considers the features of the growth of “green finance”. The nuances of the development of the green economy of foreign countries are studied. The analytical data of the green market and issued instruments are presented in the form of figures, data for a number of years. Creating a greener economy requires significant investment, whether it’s financing a new electric bus network, building a solar farm, or building power plants powered by renewable energy. In this regard, responsible investing is being developed around the world, which is based on an approach to investing that seeks to include environmental, social and management factors (ESG factors) in the investment decision- making process for better risk management and a sustainable and long- term return on investment.
HARMONIZING CLIMATE FINANCE STRATEGIES: PAVING THE PATH FOR SUSTAINABLE SYNERGY BETWEEN REAL AND FINANCIAL ECONOMIES
KOREA REVIEW OF INTERNATIONAL STUDIES , 2023
In today's world, the sole pursuit of financial gain by organizations is a thing of the past. Instead, there is a growing recognition of the vital importance of natural resource preservation and environmental protection across all aspects of life. This shift has prompted extensive global research to uncover innovative strategies for achieving sustainability. To address the urgent need to safeguard the environment, combat climate change, invest in renewable energy sources, expand green spaces, and support various sustainable development endeavour's, the concept of "Climate Finance" has emerged. This article delves into the multifaceted components of green financing, encompassing green banking, green insurance, and green bonds. Furthermore, it explores the potential and challenges associated with Climate Finance. Drawing from contemporary literature, the article endeavours to shed new light on Climate Finance as a valuable tool for promoting sustainability, particularly in developing nations like India.
A Review of Green Finance: Tool for Sustainability
IJARCSMS, 2024
Through its positive effects on the environment, green finance is essential to promote inclusive, resilient, and cleaner economic growth. It facilitates the flow of funds toward sustainable development initiatives from the governmental, corporate, and nonprofit sectors. UN Environment has been striving to coordinate national financial systems to direct money flows towards achieving the 2030 Sustainable Development Goals, realizing the importance of green financing. To foster sustainable economic growth, India must also adopt a national green finance plan. By 2040, financing for green infrastructure would need to reach over $4.5 trillion. The involvement of banks and other entities from the public and private sectors will be essential to the financing of green projects. Therefore, the primary focus of this study is on the numerous green finance efforts implemented by Indian banks and organizations in the public and private sectors. The report outlines the several obstacles that India has when it comes to green financing and offers suggestions for how to overcome them. This descriptive analysis draws upon secondary data from a variety of official publications released by the Indian government as well as reports from Indian banks, public and private sector organisations, and other sources. The study also looks at impact investment, which allows investors to forego higher financial returns in exchange for non-financial advantages in the field of green finance. It emphasizes how important institutional ownership is in directing businesses towards improved social and environmental performance. Furthermore, sustainable finance depends on the inclusion of environmental, social, and governance (ESG) considerations in investment choices. The review addresses the relationship between risk management and climate change and emphasizes how environmental hazards affect financial decision-making. The article also examines the possibility of impact investment, in which investors accept lower financial returns in exchange for non-financial advantages in the field of green finance. The analysis addresses how environmental hazards affect financial decision-making and how they connect with climate change and risk management.
The Introduction of Green Finance: A Curse or a Benefit to Environmental Sustainability?
Energy RESEARCH LETTERS, 2021
In this study, we examine the role of green finance in achieving a sustainable environment for 11 of the top countries in terms of investment in environmental protection from 2006 to 2017. By applying panel-corrected standard errors and the feasible generalized least squares model, we find that green finance is associated with an improvement in environmental sustainability. However, energy consumption and urbanization have an adverse effect on environmental sustainability.
Policy perspectives in promoting green finance
2021
Important debates about promoting green finance and its relevance have emerged in policy circles. It poses the sorts of policy questions familiar to environmentalists thinking about sustainability. In this paper, I identify and discuss some policy perspectives in promoting green finance. I show that issuing a green finance policy is important because it helps to facilitate the mainstreaming of green finance into traditional financing. Green finance can be promoted either through private sector and industry leadership, or co-promotion by the private sector and the State, or by central bank leadership. Also, some suggestions for promoting green finance for post-COVID recovery were offered such as greening the financial system in the post COVID era, de-risking green infrastructure projects to attract financiers in the post COVID era, and penalizing the financiers of business activities that harm or destroy the environment in the post-COVID era.
Challenges and Trends in Green Finance in the Context of Sustainable Development-A Bibliometric Analysis
Challenges and Trends in Green Finance in the Context of Sustainable Development-A Bibliometric Analysis, 2024
Green finance in the context of sustainable development sits within the broader discourse of environmental economics and sustainable finance. Their integration has become imperative in addressing global challenges, with the aims of understanding how financial mechanisms can be aligned with sustainability goals, investigating the role of green finance in promoting environmentally friendly investments, and fostering sustainable development. This bibliometric analysis explores the evolution, trends, and challenges in green finance research. It examines 436 articles published between 2016 and 2024, revealing insights into influential publications, authors, journals, institutions, and countries engaged in green finance for sustainability. The study identifies China, the UK, and Pakistan as leaders in research output and citation impact. Furthermore, it highlights the interdisciplinary nature of green finance, reflected in diverse publication outlets spanning environmental, social, and economic domains. The analysis underscores the increasing global interest in green finance, as evidenced by the growing citation rates over time. Key findings include the pivotal role of green finance in energy efficiency, renewable energy development, and the promotion of sustainable economic growth. Overall, this research provides valuable insights for policymakers, researchers, and practitioners, emphasizing the importance of interdisciplinary collaboration and continued research efforts in advancing sustainable finance agendas.
GREEN FINANCE - AN OPEN DOOR IN FUTURE FOR THE UNIVERSE
Shodh Sanchar Bulletin, 2020
Green Finance includes all initiatives taken by private and public banks, businesses and international organizations in developing, promoting, implementing and supporting projects with sustainable impacts through financial instruments. Green finance represents the future of financial sector through innovative financial mechanisms. This paper is written in a simple language to make everyone understand What is Green Finance? It concentrates on the evolution and concept of green finance, global impact and challenges and green finance during COVID-19. This is a Descriptive study carried only with secondary source of data. Finance is an Ocean and Green Finance is a little drop of an Ocean.
Green Finance: Regulation and Instruments
Journal of Central Banking Theory and Practice, Central bank of Montenegro, Volume 12, Number 2, pp. 185-209, M24, 2023
Green finance is the basis for the development of sustainable financing of environmental projects with the aim of respecting environmental and social aspects in making investment decisions. The development of green finance enables a green transition towards economic growth that will be sustainable in the long run because it is based on the principles of preserving the environment and reducing the risk of climate change. This creates a basis for preserving macroeconomic stability based on the development of new alternative sources of financing. The aim of this paper is to present green finance, with special reference to Serbia. The paper covers the regulation of green finance, but also the analysis of green finance instruments in terms of types and features and their development.
Green Finance and Environmental Protection in perspective of Market Mechanism & Policies
International Journal of Advance Research and Innovative Ideas in Education, 2019
Green money is another monetary example to coordinate ecological security with financial benefits, stressing "green" and "finance," two of which are disputable issues. This paper tests into business as usual of green account in the field of the sustainable power source and discovers a few insufficiencies. We commit thoughtfulness regarding the improvement of market component and detailing of strategies. By uncovering the interior logical inconsistencies between green account and natural security, we propose arrangements characteristically for better accomplishment of biological parity.
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