The Palgrave Handbook of Green Finance for Sustainable Development

Resource and environmental issues have become significant impediments to global economic development and human well-being. Green finance represents a novel approach in environmental management and marks a significant innovation and transformation in the financial sector. This manuscript delves deeply into the theoretical foundations of green finance, tracing its origins and development over decades. The concept of green finance can be traced back to Marx’s Das Kapital. In recent years, green finance has evolved under the influence of theories such as classical environmental economics, sustainable development theory, behavioral finance, and climate finance. These theories explore how financial mechanisms can support environmental protection and sustainable development, emphasizing the internalization of environmental costs, the integration of ecological, social, and economic growth, and the alignment of financial practices with climate change objectives. As green finance continues to mature, future research should focus on refining these theories to address practical implementation challenges and enhance their integration, providing more comprehensive solutions for green finance and sustainable development.

This book chapter delves into the theoretical contest of green finance, exploring diverse perspectives from neoclassical economics, institutional economics, and behavioral economics. Through a comprehensive analysis, it synthesizes insights on the complexities and challenges inherent in mobilizing capital toward environmental sustainability. Implications for practice and policy are delineated, highlighting the importance of integrating market incentives, regulatory frameworks, and societal norms to promote green finance initiatives. Looking ahead, future research and implementation efforts should focus on enhancing empirical research, fostering innovation in green financial instruments, and promoting education and capacity-building initiatives. By leveraging emerging technologies, fostering partnerships between public and private stakeholders, and building awareness of environmental risks and opportunities, stakeholders can accelerate the transition toward a more sustainable and resilient global economy. Ultimately, the chapter underscores the imperative of mobilizing capital toward environmental sustainability and emphasizes the role of finance in building a greener, more prosperous future for all.

Green finance integrates financial investment with environmental sustainability, supporting projects that foster a circular economy and mitigate climate change. Amidst escalating environmental crises, understanding its theoretical context and potential to shape policies is crucial for advancing sustainable development and ensuring climate justice globally. This chapter provides an in-depth exploration of green finance, examining its theoretical foundations, political frameworks, and the integration of circular economy principles. It contextualizes green finance within the broader narrative of sustainable development, emphasizing its pivotal role in driving economic practices that prioritize environmental conservation and a harmonious coexistence with nature. The discussion extends to the critical examination of political processes that have shaped the landscape of green finance, particularly focusing on global commitments such as the Paris Agreement and the Sustainable Development Goals. Additionally, the chapter delves into the transformative impact of circular economy practices within green finance, which promote resource efficiency and waste reduction as essential components for sustainable growth. Looking forward, we propose future research directions and policy considerations, aiming to enhance the effectiveness of green finance in fostering an environmentally resilient economy. To sum up, this chapter provides potential for future research trajectories. Finally, this chapter has significant implications for researchers, practitioners, and policymakers, and it will help them navigate green finance's ever-changing landscape in a way that promotes economic growth and environmental resilience.

The key stakeholders in green finance encompass both financiers and beneficiaries of funds allocated toward environmentally sustainable endeavors. Other stakeholders include local community groups as well as global communities impacted by the continuous degradation of the natural environment due to human activities, particularly those of commercial organizations driven by instrumental motives and lacking empathy for the detrimental effects of their activities on the natural environment. The underlying motivations of the stakeholders, particularly providers and users of funds, dictate their involvement in green finance. While the preservation of the natural environment stands as the primary altruistic motivation behind green finance, stakeholders are often influenced by factors beyond altruism. Stakeholders may prioritize instrumental objectives such as profit maximization or the execution of projects with high positive net present value. Consequently, conflicting interests among stakeholders may arise during the process of financing and utilizing green finance, contingent upon whether their motivations are driven by altruism or instrumentality. This chapter engages in a critical analysis of the motives and interests represented by the diverse stakeholders engaged in green finance. This chapter provides insights in relation to the motives of stakeholders involved in green finance. The chapter suggests that stakeholders reassess their interests and make concessions to reconcile their conflicting interest for the betterment of the common good, the natural environment that affects the well-being of communities around the globe.

In the era of unprecedented global challenges, this research delves deep into the complex nexus of sustainable development, employing a comprehensive analytical framework spanning 68 nations from 2013 to 2022. By integrating advanced statistical techniques, including fully modified ordinary least squares (FMOLS) and a two-step system generalised method of moments (GMM), this study investigates the relationships between green financing, climate risks, and economic, social and governance (ESG) readiness within the sustainable development goals (SDGs) framework. The findings unveil significant insights: green financing emerges as a catalyst, exhibiting positive associations with the SDGs index and ESG readiness. These results underscore the critical role of sustainable financial mechanisms in fostering economic growth, societal well-being, and effective governance. Conversely, climate risks pose formidable challenges, displaying negative correlations with the SDGs index and ESG readiness. These findings highlight the important role of sustainable financial mechanisms and the urgency of climate resilience strategies in shaping nations' preparedness for sustainable development. This research contributes methodologically by employing advanced econometric techniques and offers substantial policy implications. Policymakers are urged to prioritise green financing initiatives, incentivise environmentally conscious investments, and implement robust climate adaptation policies. The study serves as a clarion call for businesses, investors, and policymakers to collaboratively chart a course towards a sustainable future, embracing evidence-based strategies, and inclusive policies. This study offers actionable insights for policymakers, underlining sustainable development's economic, social, and governance dimensions in the context of green financing and climate resilience.

This chapter examines the interdependence of the aftermaths of climate change, sustainable development, and Industry 4.0. It overviews how climate change influences the frequency and severity of extreme weather phenomena as well as their impacts on the economic, social, and environmental dimensions of sustainability. Additionally, it evaluates existing policies and practices pertaining to climate disaster management and climate change adaptation strategies at global, regional, national, and local levels. Furthermore, this study investigates the effectiveness and adaptability of Industry 4.0 in the face of challenging climate and facilitating the attainment of sustainable development goals. In conclusion, this study offers suggestions and optimal approaches for coping with the aftermaths of climate change, as well as ensuring that Industry 4.0 aligns with the principles and values of sustainable development. This chapter makes valuable contributions to the field of disaster management, challenges for sustainability, and adaptation in the context of Industry 4.0. It aims to foster increased dialogue and collaboration among policymakers, practitioners, researchers, and other stakeholders to effectively address the challenges posed by the aftermaths of climate change in a sustainable and affective manner.

Climate change poses a significant threat to present and future generations, impacting financial stability, economic progress, and social well-being. International initiatives, including the United Nations’ Sustainable Development Goals (SDGsSustainable development goals (SDGs)) and the Paris Agreement, aim to address these challenges. The global shift toward sustainable investment presents an opportunity to integrate Islamic financial instruments with green finance, which are aligned with the principles of sustainable finance, encompassing financial stability, poverty alleviation, social integration, and environmental preservation. Expansion of the green bond market offers a platform for Islamic finance to thrive while dispelling misconceptions about the complexity and cost of issuing green bonds. The issuance of green Sukuk, including sovereign green Sukuk, demonstrates the alignment of the Islamic capital market with green finance. Therefore, the emergence of positive screening, instruments of Sukuk-Waqf, and social bonds exemplify the diverse growth of the green finance sector beyond the traditional bond and Islamic finance markets. Islamic finance and green finance both share a commitment to ethical principles rooted in the fundamental spirit of Maqāṣid al-Shariah. Thus, the ability of Islamic finance to attract untapped investment strengthens its role in promoting sustainability. It has the potential to drive global green development, resonating with investors worldwide who are concerned with climate change. However, achieving convergence in standards, promoting innovation, and enhancing transparency are crucial for the expansion of this segment of the market. In this context, this chapter explores the potential of Islamic green finance in addressing climate change. Demand for Sharia-compliant green investments is rising, but a global shortage of viable options persists. Strategic investments in infrastructure and the identification of growth-driving factors are imperative for Islamic green finance to flourish.

Given the growing calls to increase sustainable business practices in transitioning to sustainable economies and the sense of urgency expressed by global actors to behave in a responsible sustainable manner when interacting with the environment and communities at large it is apparent that efforts to further this objective require a large investment. This investment is largely referred to as green finance. This chapter explores this phenomenon and links it to the global sustainability reporting frameworks and standards currently available by conducting a systematic literature review. Additionally, the chapter highlights the relationship between green finance, sustainability, and non-financial reporting. It further discusses reporting frameworks and reporting standards such as the Global Reporting Initiative standards, issued by the Global Sustainability Board (GRI) and those issued by the International Sustainability Standards Board (ISSB). Despite the undeniable benefits of these reporting practices, the chapter acknowledges and discusses four key challenges and critiques, including the costs of compliance, potential skewed stakeholder perspectives, subjective determination of materiality, and the risks of greenwashing and selective reporting. It emphasizes the ongoing need for a standardized reporting criterion, strengthened regulations, and enhanced accountability measures to foster transparency and trust. The conclusion calls for stricter guidelines, independent verification, and the harmonization of financial practices with sustainability goals to realize a sustainable and responsible future.

This study focuses on entrepreneurship as entrepreneurship is a nexus of all disciplines including finance, technology, marketing, innovation, and sustainability. Due to the dynamic nature of entrepreneurship, we have tried to explore the transition of entrepreneurship toward sustainability. In this regard, a bibliographic approach is used to reach the findings of the study. The findings of the study entail that there are four leading themes (see Fig. 2) that help us to track entrepreneurship toward sustainability: Green Entrepreneurship, Sustainable Entrepreneurship, Sustainability and Entrepreneurship, and Sustainable Competitiveness. This study provides recommendations for entrepreneurs, SMEs, Organizations, and policymakers.

We investigate the impact of corporate governance and green process innovation on firm financial performance. With a sample of 550 listed non-financial firms of Asian emerging economies, we take data from DataStream from 2012 to 2021. Analysis of the data is performed using generalized method of moments (GMM). Findings of our study show that board size and CEO duality have significant and negative, while independent directs exhibit a significant and positive impact on firm performance. Moreover, green process innovation has a significant positive impact on financial performance of firms which provides that investment in green innovation can enhance the performance of the firms. The findings provide implications for corporate governance practices to enhance performance. In additions, results provide best practices for green process innovation that yield positive results for financial performance.

The concept of sustainable development has emerged from the intrinsic link between economic advancement and the preservation of the environment. Today, this development represents a crucial challenge for all economies. It involves reflecting on factors capable of protecting the environment and implementing strategies to preserve its resources. The purpose of this chapter is to demonstrate the importance of sustainable actions that serve as a commitment to establish sustainable models guiding investment and financial system goals. This chapter consequently allows us to understand how mobilization for sustainable investments is at the core of models promoting an environmental transition targeting resource sustainability and pollution reduction. It aims to highlight the determinants of climate-friendly financing and prospects that ensure an economic and financial system adapted to these objectives. The general conclusion from this chapter is that the sustainable management of the environment through sustainable investment has very beneficial impacts on societal well-being and the planet, but it requires the commitment of various actors, both public and private. Similarly, it underscores the major role of decision-makers in influencing the outcomes of a green financial market to steer economic investment. This commitment requires a reshaped financial system that can represent alternative economic perspectives. It is an environmental reform that must begin with a reform of the financial system to serve a sustainable and alternative economy.

In the contemporary landscape of global finance and corporate governance, Environmental, Social, and Governance (ESG) characteristics have emerged as pivotal factors influencing investment decisions and shaping the strategies of businesses. This chapter examines the multifaceted aspects of ESG, offering a comprehensive exploration of its definition, historical evolution, and its significance in the investment space. The chapter further makes a detailed examination of ESG rating systems, explaining the methodologies employed by key providers such as MSCI, Morningstar, Deutsche Börse (ISS), Moody’s, Refinitiv, and S&P. Each provider’s specification of risk factors and assessment processes is scrutinized to provide a clear understanding of how ESG ratings are formulated. As the demand for ESG information continues to grow rapidly, a critical analysis of the challenges and issues associated with ESG ratings is presented. This includes a discussion on data issues, conceptual problems, conflicts of interest, the phenomenon of greenwashing, and instances of puzzling ratings. Furthermore, the chapter explores the regulatory landscape surrounding ESG, shedding light on the evolving framework aimed at standardizing and ensuring the reliability of ESG disclosures. In essence, this chapter serves as a comprehensive guide, unraveling the complexities of ESG from its conceptual foundations to the operational intricacies of major rating systems. Through this exploration, the chapter presents a thorough understanding of the nuances, challenges, and regulatory frameworks that define the contemporary landscape of ESG in the financial and corporate sectors.

This study investigates the impact of firm-level Environmental, Social, and Governance (ESG) disclosures on firm market prices. We also examine whether firm size and industry sensitivity moderate the association between ESG disclosures and the market price. Using 582 firm-year observations of listed companies registered on the Australian Stock Exchange (ASX), we conduct panel data regression for ESG disclosures and financial data from 2018 to 2020. Our findings reveal that there is a positive association between individual and combined scores of ESG and market price, with this relationship being more pronounced for larger Australian firms. Participation in social activities by firms in sensitive industries is significantly positively associated with firm market price, but we do not find industry sensitivity to be a significant moderator for the relationship between environmental or governance reporting and market price. Our findings provide insights to corporate managers in determining how they can improve the market price by reporting more ESG information depending on their relative size and the nature of their industry. In addition to showing stakeholders how firms take responsibility towards a sustainable approach by disclosing environmental, social, and governance information, this study also reveals opportunities for further research in the multifaceted aspects of ESG reporting to fully uncover its nuances.

This empirical study investigates the influence of the institutional landscape on investments in green technology and the subsequent impact on firm-level performance. Our research centers on a comprehensive dataset of 609 firms operating within the global automobile sector across 17 countries, spanning the years 2003–2017. We consider various facets of the institutional environment, including national governance, economic growth, the stringency of environmental policy toward innovation and technology (SEP), and the quality of corporate governance. Our panel regression analysis reveals that both SEP and economic growth stand out as pivotal determinants of investments in green technology, and these findings hold steady across alternative model specifications. Furthermore, our research underscores a positive correlation between the institutional environment and firm-level performance. These insights remain robust even when we segment the sample based on national policy stringency and focus on the top innovating countries within the sector. To ensure the reliability of our results, we employed the propensity score matching technique and structural equation modeling as supplementary methods, all of which corroborate our central findings.

Airlines are fundamental in integrating the 17 Sustainable Development Goals (SDGs) in their corporate activities to support the UN agenda towards a world without poverty, environmental stress, and inequality. This study examines the potential changes related to the impact of the COVID-19 pandemic on the engagement with SDGs in corporate reporting by airline companies. We contribute to a limited body of empirical research on CSR reporting in the airline industry by extending the examination of whether and how airlines implement SDGs in corporate reporting. In doing this, we respond to calls for more research on contextual understanding of SDGs disclosure practices. We find that the level of SDG disclosure among the sample remains low, but airlines that do report tend to provide specific information, demonstrating their initiatives, actions, and outcomes. The majority of disclosures were specific rather than generic in both years. We demonstrate which SDGs were most disclosed by airlines, including changes between 2018 and 2020, and offer suggestions for future research.

This study examines the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP) in Finland. Based on the data from 21 large Finnish companies listed on the Nasdaq Helsinki, a linear regression model is developed for inquiring into the connection between CEP and CFP. After controlling for the effect of four variables namely, profitability (ROA), leverage (debt-to-equity ratio), research and development intensity (research and development expenses divided by total sales) and growth (percentage change in sales), the current study finds that better CEP contributes to better CFP even in a civil law country like Finland and even if the quantitative measure so CEP are employed in the analysis. GHG emissions emerge as the most important proxy of CEP, having a significant influence on the stock market returns, no matter the way GHG emissions are used in the generic regression model (i.e., amount of GHG emissions, reduction in GHG emissions, or ratio of GHG emissions to sales revenues), whereas water consumption, in all cases, has no significant impact on stock returns. Waste production and energy consumption also emerge as factors having significant influence on the stock market returns if certain measures of CEP are employed (e.g., absolute amount of and reduction in the amount of waste production, and reduction in the amount of energy consumption). Our analysis has important implications for policymakers and investors.

Trading greenhouse gas emissions is gaining importance as a means to combat the hazards of climate change. In her pursuit of a lower carbon footprint in the economy, Malaysia, a middle-income country, has undertaken a multi-pronged approach of schemes and actions. Key among them is the Clean Development Scheme (CDM), which has been operational for a significant number of years now. This paper's main thrusts are the analyses and appraisal of the performance of the CDM scheme. We further review the existing challenges and opportunities to improve low-carbon pursuit of Malaysia. Our review finds that the existing legislation, policies, and implementation of market mechanisms are inadequate in achieving the targets Malaysia set for herself. Moreover, greater stakeholder engagement and spreading of awareness are needed in order for Malaysia to enjoy the fruits of its current actions.

The significance of green finance (GF) has grown as its ideas and practices have advanced and matured. It now plays a crucial role as a financial catalyst for promoting sustainable development and reducing carbon emissions. However, the imbalance of green finance clustering (GFC) at the geospatial level in China has become more and more prominent, and there is a lack of research on the impact of GFC on total factor carbon productivity (TFCP). Therefore, the objective of this study is to address this research gap by using panel data from 30 provinces in China during the period of 2007–2018 in order to investigate the impact of the GFC on TFCP. The results of the analysis demonstrate a significant enhancement of GFC on TFCP. Secondly, our basic conclusion still holds after a series of robustness tests and addressing endogenous issues. Thirdly, the positive effect of green security clustering on TFCP is most obvious, followed by green investment clustering and green credit clustering. At last, the impact of GFC on TFCP exhibits nonlinear characteristics, influenced by factors such as energy efficiency, green innovation, and energy consumption. Building upon these findings, this paper puts forth policy recommendations aimed at elevating the GFC level to enhance TFCP, thereby facilitating the achievement of carbon neutrality.

Sustainable Development Goal Seven highlights the role of green energy in reducing greenhouse gas emissions, which ensures access to affordable, reliable, sustainable, and modern energy for all. Renewable energy financing is considered green finance because it protects against environmental degradation. Pakistan's government (GoP) considers this goal a high priority basis. This chapter aims to analyze the direction of green financing in Pakistan's energy sector. This chapter focuses on domestic and international funding at the national and sub-national levels and compares the generation capacity. The chapter highlights that Pakistan contributes less than one percent to greenhouse gas emissions. However, at the policy level, the GoP has taken many initiatives to protect the adverse impact on the environment. For instance, in a recent energy policy, the GoP has committed to generating 60 percent of energy through renewable sources. The chapter further reveals that 38 percent of domestic finance has been given toward renewable energy in the past few years compared to 45 percent of international finance given to hydel-related energy projects in Pakistan. In addition, domestic financing is focused toward Nuclear power compared to international finance, which focuses on the renewable energy sector. The chapter proposes that the Government of Pakistan (GoP) could develop a comprehensive, long-term integrated energy policy. This would involve engaging all stakeholders, experts, and academia to collectively promote the adoption of green energy initiatives in the country.

The introduction of the Green Deposit Framework by Reserve Bank of India (RBI) has opened the gate for individuals and institutions to invest their funds into environment-friendly projects, thereby facilitating green finance in India and promoting sustainable development. In a fresh commitment to encourage responsible banking, these deposits offer the opportunity to significantly contribute to the global shift toward sustainability. This chapter looks at the changing landscape of green deposits and breaks down the basics of green deposits. It highlights the different types of green deposits, like fixed deposits, savings accounts, recurring accounts, and certificates of deposits, each designed to meet different financial needs. It also underlines their main goal, which is to allocate funds to various environment-related projects. Additionally, the chapter emphasizes how green deposits support social and environmental goals. It examines the regulatory framework established by the RBI, emphasizing transparency, disclosure, and the alignment of funds with green activities. The potential for tax incentives and the integration of carbon credits with green deposits adds a layer of financial attractiveness to these instruments.

The present research aims to explore the interaction between credit risk, climate risk, and economic policy uncertainty, in the Middle East and North Africa (MENA) region with a focus on sustainable economic development. To achieve these goals, this study uses a sample of 68 MENA banks during the period 2005–2020 and performs the System Generalized Method of Moments (SGMM). Empirical findings of the analysis reveal that credit risk is negatively associated with climate risk index. An improvement in the climate risk index significantly decreases credit risk for MENA banks. Furthermore, we found that the interaction between credit risk and economic policy uncertainty positively affects the level of credit risk. The findings of this study may have significant consequences for MENA bankers and policymakers.

The primary objective of business growth is to attain long-term corporate expansion and optimise shareholder value. Additional research is required to investigate the impact of ESG disclosure on sustainable growth (SGR). By integrating stakeholder theory and signaling theory, a panel data analysis conducted on publicly traded A-share companies in China, reveals that disclosing ESG information can have a positive impact on promoting SGR. Companies that disclose ESG information experience greater promotion of sustainable growth compared to those that do not disclose such information. Moreover, the extent of ESG disclosure positively correlates with the magnitude of the beneficial impact on SGR. Additionally, ESG disclosure contributes to SGR by alleviating financing constraints as well as improving human capital. The results of our study enhance the existing knowledge on ESG disclosure, encourage companies to actively engage in ESG disclosure for SGR, and contribute to a deeper understanding of the relationship between ESG reporting and sustainable business growth.

This study investigates the nexus between agricultural-related technological innovation and carbon emissions reduction in the Chinese agricultural sector, with a focus on the mediating role of human capital development. Employing a robust Spatial Durbin Model (SDM), we analyze data from 2010 to 2019 across 31 Chinese provinces. The findings reveal that technological innovation directly and significantly reduces carbon emissions, while also indirectly doing so by enhancing human capital. Regional heterogeneity analysis further shows that the effects of innovation on emissions vary markedly across eastern, central, and western regions of China. The study provides critical insights into the dual benefits of technological innovation in agriculture, and new insights to EKC hypothesis, highlighting its potential in driving sustainable agricultural practices and informing targeted regional policies.

Sustainability and green finance are becoming increasingly essential in our effort to tackle environmental challenges. Debt-for-Nature Swap financing represents a novel and comprehensive approach that converges with these principles, offering a unique way to protect our planet's ecosystems while fostering responsible economic development. This chapter delves into the intricate relationship between sustainability, green finance, and Debt-for-Nature Swap financing, emphasizing their pivotal role in shaping the future of our planet. Sustainability's emphasis on balancing environmental protection, social equity, and economic prosperity has never become more critical. Green finance complements this by directing investments toward environmentally sustainable projects. Debt-for-nature Swap financing is an innovative mechanism to address environmental issues in developing nations. It entails exchanging a portion of a country's foreign debt for commitments to environmental conservation and sustainability projects such as reforestation, habitat preservation, and wildlife protection. The relevance of Debt-for-Nature Swap financing to sustainability and green finance is multi-faceted. It empowers nations to prioritize conservation while fostering sustainable economic development, global cooperation, and long-term sustainability. By reducing debt burdens in exchange for environmental commitments, this mechanism encourages environmentally responsible practices that align with green finance principles. It also creates jobs, supports local communities, and promotes green industries, showcasing energy between economic development and sustainability. Furthermore, the Debt-for-Nature swap fosters international collaboration by bringing governments, NGOs, and international financial institutions together. Sustainability and green finance principles provide a shared framework for diverse stakeholders to address global environmental issues effectively. Debt-for-nature swap financing offers a pathway to a sustainable future.

Green banking is a concept adopted by banks to promote banking strategies to help fight against climate change and ensure a sustainable environment. The rising environmental disasters and the increasing demand from stakeholders for sustainable growth and development, it’s high time for financial institutions to help maneuver toward a greener economy. Additionally, the commitments of the world's leaders in 2015 to attain sustainable development (SDC) goals by 2030 and their target to achieve net-zero emission by 2050 will not be possible without the successful implementation of green banking. Banks can implement green banking principles by reducing the inhouse carbon footprint and being a catalyst for lowering external carbon emissions. They can do it by conserving energy, reducing dependency on paper, increasing online banking, and using technology to minimize resources. Likewise, banks can help to reduce external carbon emissions by developing socially and environmentally friendly products and services. They can include various loans, investments, and debt mechanisms to encourage their investment in green projects. To do so, the banks can do an environmental risk rating before granting loans to borrowers and restricting loans on those projects, which leads to a significant increase in environmental pollution (CO2 emission). This chapter provides a brief overview of green banking, its current green moment status and highlights the banks’ challenges in implementing the green moment. It uses the broader perspective to better understand the challenges in both developing and developed countries. Furthermore, it also briefly discusses new opportunities green banking provides to its stakeholders.

Growing awareness of climate and environment concerns during the last two decades has induced a positive trend for socially responsible investing. One of these new sustainable investing instruments is the so-called green bond, which represents a fixed-income instrument established to raise money for environmentally friendly projects. This book chapter explores the impact of changes in various uncertainty indices and the realized volatility of the green bond market. The uncertainty indices include the implied stock market volatility index (VIX), the implied oil market volatility index (OVX), the global economic policy uncertainty index (GEPU), the geopolitical risk index (GPR), and the daily infectious disease equity market volatility tracker (EMVID). Green bond price data are presented by the iShares USD Green Bond ETF (BGRN) and the VanEck Green Bond ETF (GRNB). The sample period is 3.12.2018–28.2.2023. Given that most of the uncertainty indices are available at the monthly frequency and the realized volatility of the green bond markets is computed at the daily frequency, the method used in the analysis consists of the mixed-data-sampling (MIDAS) regression. The results indicate a statistically significant positive relationship between changes in oil implied volatility index and the realized volatility of green bonds, whereas the green bond market volatility does not seem to significantly react to changes in uncertainties about macroeconomic conditions, geopolitics, or stock market volatility.

In the past decade, green banking and finance have gained significant prominence as crucial elements in the global financial and environmental landscape. Scholars have dedicated considerable efforts to raise awareness and enhance the understanding of these concepts and their far-reaching implications. Despite the growing recognition of the importance of green banking and finance, there remains a significant challenge in achieving widespread adoption and effective implementation, particularly in emerging economies. To address this challenge, this chapter provides a comprehensive exploration of the concept of green banking and finance, shedding light on its nature, origins, and the factors influencing its successful adoption, including stakeholder pressures, innovation and product development, bank size, and market dynamics. The chapter further explores the obstacles impeding the effective adoption of green banking and finance, including the lack of awareness, regulatory complexities, costs, risks, technology, and greenwashing. The chapter concludes by suggesting valuable practical insights and solutions aimed at mitigating the global obstacles hindering the realization of the full potential of green banking and finance. If these obstacles are addressed head-on, through a collaborative effort among stakeholders, it is possible to unlock the full potential of green banking and finance and drive positive change on a global scale.

The study aims to analyze the dependence structure between green bonds market and clean energy markets. For this purpose, the dependence has been tested through copula family where five copulas, Gaussian copula, t coupla, frank, Clayton, and Gumble copula are used. The findings of the study reveal that the dependence exists in all the pairs, however, the selection of model can add to the understanding of the direction of the movement by selecting the best-fit copula to measure the dependence structure between these markets. The findings of the study are useful for the investors for efficient capital allocation and for the policymakers to devise useful policies for these new markets.

Green finance is an imperative field that tackles contemporary economic sustainability challenges by placing emphasis on investments that are environmentally responsible and by promoting sustainable economic growth. Promoting resource efficacy in the agricultural and industrial sectors encourages the implementation of waste reduction strategies and sustainable practices. It is crucial to integrate finance and sustainability in order to address global environmental issues such as depletion of natural resources and climate change. Green finance initiatives seek to harmonize operations and strategies with the Sustainable Development Goals (SDGs) and the Paris Agreement of the United Nations, thereby promoting a global economy that is more resilient and sustainable. The circular economy paradigm, which is bolstered by green finance, advocates for the implementation of recycling and resource reclamation strategies, which ultimately result in reduced waste production and resource consumption. In addition to producing environmental advantages, this may also generate financial benefits for corporations. Green finance initiatives are of the utmost importance in ensuring the legitimacy of sustainable development, which involves the false representation of investments as ecologically beneficial. Cooperation between nation-states, financial institutions, regulatory bodies, and civil society is essential for green finance initiatives to be successful. The ethical practices and commitment to sustainability goals of financial institutions are coming under heightened scrutiny from stakeholders.

Understanding the integration of green finance in fostering sustainable economic growth is crucial, particularly in the context of developing countries like Morocco. In response to climate change, there is an increasing shift towards a green economy supported by sustainable financial practices. To evaluate the effectiveness of these practices, this chapter examines various financial products, such as green bonds, introduced by both public and private institutions. The focus is on how these instruments contribute to a carbon-free economy and how businesses play a vital role in this transition. Through an analysis of sustainable finance's impact on environmental sustainability, this chapter offers key insights for financial stakeholders and businesses. The findings provide valuable recommendations for aligning financial strategies with environmental goals, as well as directions for future research on the interplay between finance and sustainability.

The research aims to present and analyze research related to the seventeen sustainable development goals (SDGs) according to the United Nations (UN) 2030 Plan, which was issued in 2015, by studying the dimensions and scope of each study during the period 2020–2023 in detail. And evaluate its importance and contribution to the SDGs. This is with the aim of reaching the research gaps that were not covered by these studies to be guided by the results of this study in the expected areas of research in this field. The importance of this research stems from providing new research points to fill these research gaps in the future and address shortcomings in the field of implementing SDGs in all countries of the world in general and developing countries in particular. The researchers reached a set of theoretical implications, the most important of which is that most studies focused on the economic aspect without addressing the role of companies in contributing to the implementation of SDG initiatives and thus their impact on national economies. There are a few obstacles facing developing countries in implementing the SDGs, which makes them lag developed countries in this field.

This chapter provides a comprehensive guide that explores the intersection of artificial intelligence (AI) and green finance. It helps readers gain a deep understanding of the concepts and applications of green finance and the challenges it faces. The chapter delves into the role of AI in green finance. With a focus on AI techniques, this chapter provides valuable insights into the benefits and challenges of AI in green finance. Furthermore, it examines the ethical considerations and regulatory framework surrounding the use of AI in green finance. Lastly, the chapter explores future trends in AI and green finance and the potential impact of AI on the future of green finance. Overall, this chapter interests professionals, researchers, and policymakers interested in connecting the power of AI to drive sustainable and environmentally friendly financial practices.

The recent rise of artificial intelligence is significantly reshaping almost every avenue of human life including the economic environment. The potential of these models in mitigating problems and crises is still unraveling. One such vital avenue is the heightened climatic irregularities that have brought the search for sustainable green solutions to the global forefront of financial research. Consequently, this study endeavors to explore the existing literature on the infusion of artificial intelligence through research in green finance. The study has employed a well-established bibliometric methodology to search the SCOPUS database through relevant Boolean operators. Subsequently, the acquired dataset of 23 articles underwent an analysis through RStudio to obtain pertinent information highlighting recent trends and gaps in the existing literature. The study also employed the Linguistic Inquiry and Word Count (LIWC) tool to extract the underlying tones and expectations from AI's implication in green finance. The study's results identified significant gaps and a huge potential for future researchers. The descriptive statistics of the bibliometric assessment indicate a lack of focus from researchers, journals, institutions, and economies. The majority of the literature primarily only focused on the Asian Pacific region. The linguistic assessment summarized and identified that the avenue has significant positive potential and implications. This study covers a significant undertaking addressing the existing situation in the avenue. Furthermore, the value of the investigation is to identify the shortcomings and future directions for the upcoming studies.