Insights From Eu Policy Framework in Aligning Sustainable Finance for Sustainable Development in Africa and Asia

Abstract

It is conspicuous that the mainstream financial system in the EU is transforming into a sustainable financial system by a supra/national policy and institutional framework for meeting the goals of SDGs and the targets of the Paris Agreement for climate change together with Nationally Determined Contribution. However, Botswana or Sri Lanka has no such framework. Hence, a need of the hour has arisen to evaluate the sustainable finance policies in Botswana, Sri Lanka, together with the EU seeking insights from the EU's policy framework. Since sustainable finance is not a well-grown branch of the conventional mainstream financial system, the nature of the knowledge is produced by social constructivism based on the grounded theory and the theory is inductively developed for achieving the purpose of the research. The study found, among other things, that incorporating existing policies into the multiple ministries and affiliated institutions together with the current industry-led policy initiatives to manage ESG risks are not adequate. Hence it is recommended various insights to be taken into consideration by the policymakers to formulate a national framework for mobilizing public and private capital to meet the goals of sustainability.

Sustainable Development of African Countries: Minding Public Life, Education, and Welfare

“…At present, many literature papers have studied the SD of African countries, especially in the aspects of governance, economy, resources, and environment, like Selmier and Newenham-Kahindi ( 8 ), Mutiiria et al ( 9 ), Asongu and Nnanna ( 10 ), and Liyanage et al ( 11 ), but the research on public life, education, and welfare is not enough. For example, Atisa et al ( 12 ) studied legal structures, governance, and sustainable development in African countries.…”

Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development

“…Ziolo et al (2021) demonstrate the important role of sustainable finance in achieving Sustainable Development Goals. Liyanage et al (2021) prove the progressiveness of the EU policy framework in aligning sustainable finance for sustainable development in Africa and Asia. Ionescu (2021) proved the expedience of using green finance for low-carbon energy, sustainable economic development, and climate change mitigation during the COVID-19 pandemic.…”

Revisiting the financial market interdependence during COVID-19 times: a study of green bonds, cryptocurrency, commodities and other financial markets

“…Green bonds (S&P Green Bond US Dollar and S&P Green Bond Select) have a modest market cap in comparison to the cryptocurrency growth since 2013, but both have influenced investor attention. Green inventions, green technical adaptations, basic research toward a carbon-neutral society and multinational businesses (for example, Tesla) are likely to impact future clean technology investments (Liyanage et al. , 2020; Rizzello and Kabli, 2020).…”

“…Green bonds (S&P Green Bond US Dollar and S&P Green Bond Select) have a modest market cap in comparison to the cryptocurrency growth since 2013, but both have influenced investor attention. Green inventions, green technical adaptations, basic research toward a carbon-neutral society and multinational businesses (for example, Tesla) are likely to impact future clean technology investments (Liyanage et al, 2020;Rizzello and Kabli, 2020). Financial markets and the players who administer and communicate their investment logic are heavily reliant on conventional asset classes such as oil, gas, coal, nuclear and allied groupings (Gao et al, 2021;Yousaf et al, 2022), but these emerging asset classes are attempting to diversify the present carbon-intensive investing rationale in favor of a more environmentally friendly and carbon-neutral one.…”