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Green finance research around the world: a review of literature

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  • Ozili, Peterson Kitakogelu

Abstract

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 cross-country 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.

Suggested Citation

  • Ozili, Peterson Kitakogelu, 2022. "Green finance research around the world: a review of literature," MPRA Paper 114899, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114899
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    File URL: https://mpra.ub.uni-muenchen.de/114899/1/MPRA_paper_114899.pdf
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    References listed on IDEAS

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    1. Romain Berrou & Nicola Ciampoli & Vladimiro Marini, 2019. "Defining Green Finance: Existing Standards and Main Challenges," Palgrave Studies in Impact Finance, in: Marco Migliorelli & Philippe Dessertine (ed.), The Rise of Green Finance in Europe, chapter 0, pages 31-51, Palgrave Macmillan.
    2. Noam Bergman, 2018. "Impacts of the Fossil Fuel Divestment Movement: Effects on Finance, Policy and Public Discourse," Sustainability, MDPI, vol. 10(7), pages 1-18, July.
    3. Dikau, Simon & Volz, Ulrich, 2021. "Central bank mandates, sustainability objectives and the promotion of green finance," Ecological Economics, Elsevier, vol. 184(C).
    4. Chang, Youngho, 2019. "Green Finance in Singapore: Barriers and Solutions," ADBI Working Papers 915, Asian Development Bank Institute.
    5. Kathrin Berensmann & Nannette Lindenberg, 2019. "Green Finance: Across the Universe," World Scientific Book Chapters, in: Sabri Boubaker & Duc Khuong Nguyen (ed.), Corporate Social Responsibility, Ethics and Sustainable Prosperity, chapter 11, pages 305-332, World Scientific Publishing Co. Pte. Ltd..
    6. Berensmann, Kathrin & Lindenberg, Nannette, 2016. "Green finance: actors, challenges and policy recommendations," Briefing Papers 23/2016, German Institute of Development and Sustainability (IDOS).
    7. Radoslav S. Dimitrov, 2016. "The Paris Agreement on Climate Change: Behind Closed Doors," Global Environmental Politics, MIT Press, vol. 16(3), pages 1-11, August.
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    Cited by:

    1. Maria V. Sigova & Igor K. Klyuchnikov & Oleg I. Klyuchnikov, 2024. "Sustainability and Security of Green Finance from the Multi-agent Games Perspective," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 78-95, February.
    2. Mertzanis, Charilaos, 2023. "FinTech finance and social-environmental performance around the world," Finance Research Letters, Elsevier, vol. 56(C).
    3. Lu, Xunfa & Huang, Nan & Mo, Jianlei & Ye, Zhitao, 2023. "Dynamics of the return and volatility connectedness among green finance markets during the COVID-19 pandemic," Energy Economics, Elsevier, vol. 125(C).
    4. Xuelian Li & Tinghui Lu & Jyh-Horng Lin, 2022. "Bank Interest Margin and Green Lending Policy under Sunflower Management," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    5. Clara Paola Camargo-Díaz & Edwin Paipa-Sanabria & Julian Andres Zapata-Cortes & Yamileth Aguirre-Restrepo & Edgar Eduardo Quiñones-Bolaños, 2022. "A Review of Economic Incentives to Promote Decarbonization Alternatives in Maritime and Inland Waterway Transport Modes," Sustainability, MDPI, vol. 14(21), pages 1-20, November.
    6. Mihaela Simionescu & Beáta Gavurová, 2023. "Pollution, income inequality and green finance in the new EU member states," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

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    More about this item

    Keywords

    literature review; green finance; green investment; climate change; sustainable finance; green bonds; green banks; sustainable development goals; climate finance; environment; green loan; climate change mitigation. Paris Agreement; COP26.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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