IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i10p4159-d1395455.html
   My bibliography  Save this article

Integrating Climate Change Risks and Sustainability Goals into Saudi Arabia’s Financial Regulation: Pathways to Green Finance

Author

Listed:
  • Mohammad Omar Alhejaili

    (Law School, University of Tabuk, Tabuk 47512, Saudi Arabia)

Abstract

This study examines the integration of climate change risks and sustainability goals within Saudi Arabia’s financial regulatory framework to enhance green finance initiatives aligned with Vision 2030. A qualitative research design synthesises insights from a comprehensive literature review, semi-structured interviews with domain experts, and a detailed analysis of critical Saudi green finance frameworks and legislation. This research identifies mechanisms for embedding sustainability in the financial sector and addresses the challenges, opportunities, and strategic directions essential for Saudi Arabia within the global context of sustainable finance. The findings reveal a robust foundation laid by Vision 2030 initiatives yet underscore the need for enhanced regulatory frameworks, increased market readiness, and greater societal engagement. This study highlights a significant literature gap in understanding Saudi Arabia’s unique approach to green finance amid its economic diversification and sustainability goals. Contributing to original insights, this research underscores the critical role of Saudi Arabia in the global energy market and its substantial economic and environmental transformations. It offers detailed analyses and recommendations that enrich the discourse on sustainable finance, impacting policymakers, financial practitioners, and scholars.

Suggested Citation

  • Mohammad Omar Alhejaili, 2024. "Integrating Climate Change Risks and Sustainability Goals into Saudi Arabia’s Financial Regulation: Pathways to Green Finance," Sustainability, MDPI, vol. 16(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4159-:d:1395455
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/10/4159/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/10/4159/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Seyed Meysam Khoshnava & Raheleh Rostami & Rosli Mohamad Zin & Dalia Štreimikiene & Alireza Yousefpour & Abbas Mardani & Melfi Alrasheedi, 2020. "Contribution of green infrastructure to the implementation of green economy in the context of sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(1), pages 320-342, January.
    2. Kemfert, Claudia & Schmalz, Sophie, 2019. "Sustainable Finance: Political Challenges of Development and Implementation of Framework Conditions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(3), pages 237-248.
    3. Sachs,Jeffrey D. & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2022. "Sustainable Development Report 2022," Cambridge Books, Cambridge University Press, number 9781009210089, November.
    4. Felipe Arias Fogliano de Souza Cunha & Erick Meira & Renato J. Orsato, 2021. "Sustainable finance and investment: Review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3821-3838, December.
    5. Joanna Brzyska & Izabela Szamrej-Baran, 2023. "The COVID-19 Pandemic and the Implementation of Sustainable Development Goals: The EU Perspective," Sustainability, MDPI, vol. 15(18), pages 1-19, September.
    6. Capasso, Marco & Hansen, Teis & Heiberg, Jonas & Klitkou, Antje & Steen, Markus, 2019. "Green growth – A synthesis of scientific findings," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 390-402.
    7. Finger, Maya & Gavious, Ilanit & Manos, Ronny, 2018. "Environmental risk management and financial performance in the banking industry: A cross-country comparison," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 52(C), pages 240-261.
    8. Timo Busch & Stefan Lewandowski, 2018. "Corporate Carbon and Financial Performance: A Meta‐analysis," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 745-759, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ren, Yi-Shuai & Ma, Chao-Qun & Chen, Xun-Qi & Lei, Yu-Tian & Wang, Yi-Ran, 2023. "Sustainable finance and blockchain: A systematic review and research agenda," Research in International Business and Finance, Elsevier, vol. 64(C).
    2. Muhammad Kashif & Chen Pinglu & Saif Ullah & Mubasher Zaman, 2024. "Evaluating the influence of financial technology (FinTech) on sustainable finance: a comprehensive global analysis," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 38(1), pages 123-155, March.
    3. Simona Galletta & Sebastiano Mazzù & Valeria Naciti & Carlo Vermiglio, 2021. "Sustainable development and financial institutions: Do banks' environmental policies influence customer deposits?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 643-656, January.
    4. Rekha Rao-Nicholson & Htwe Htwe Thein & Yifan Zhong, 2024. "A thematic analysis of the links between multinational enterprises’ corporate social responsibility and the Sustainable Development Goals in Myanmar," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 203-223, June.
    5. Kornsorn Srikulnath & Nattakan Ariyaraphong & Worapong Singchat & Thitipong Panthum & Artem Lisachov & Syed Farhan Ahmad & Kyudong Han & Narongrit Muangmai & Prateep Duengkae, 2022. "Asian Elephant Evolutionary Relationships: New Perspectives from Mitochondrial D-Loop Haplotype Diversity," Sustainability, MDPI, vol. 15(1), pages 1-12, December.
    6. Enrico Bergamini & Georg Zachmann, 2020. "Exploring EU’s Regional Potential in Low-Carbon Technologies," Sustainability, MDPI, vol. 13(1), pages 1-28, December.
    7. Francesco Gangi & Antonio Meles & Eugenio D'Angelo & Lucia Michela Daniele, 2019. "Sustainable development and corporate governance in the financial system: Are environmentally friendly banks less risky?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 529-547, May.
    8. Bin Xue & Bingsheng Liu & Tao Liang & Dong Zhao & Tao Wang & Xingbin Chen, 2022. "A heterogeneous decision criteria system evaluating sustainable infrastructure development: From the lens of multidisciplinary stakeholder engagement," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 556-579, August.
    9. Xinyu Hu & Chun Dong & Yihan Wang, 2023. "Coupled and Coordinated Analysis of Urban Green Development and Ecological Civilization Construction in the Yangtze River Delta Region," Sustainability, MDPI, vol. 15(7), pages 1-26, March.
    10. Kladakis, George & Chen, Lei & Bellos, Sotirios K., 2023. "Ethical bank disclosures and liquidity creation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    11. Homroy, Swarnodeep, 2023. "GHG emissions and firm performance: The role of CEO gender socialization," Journal of Banking & Finance, Elsevier, vol. 148(C).
    12. Shuanglian Chen & Zhehao Huang & Benjamin M. Drakeford & Pierre Failler, 2019. "Lending Interest Rate, Loaning Scale, and Government Subsidy Scale in Green Innovation," Energies, MDPI, vol. 12(23), pages 1-22, November.
    13. Song, Yang & Zhang, Zhiyuan & Sahut, Jean-Michel & Rubin, Ofir, 2023. "Incentivizing green technology innovation to confront sustainable development," Technovation, Elsevier, vol. 126(C).
    14. Trinks, Arjan & Mulder, Machiel & Scholtens, Bert, 2020. "An Efficiency Perspective on Carbon Emissions and Financial Performance," Ecological Economics, Elsevier, vol. 175(C).
    15. Fareri, Silvia & Apreda, Riccardo & Mulas, Valentina & Alonso, Ruben, 2023. "The worker profiler: Assessing the digital skill gaps for enhancing energy efficiency in manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    16. Azmi, Wajahat & Hassan, M. Kabir & Houston, Reza & Karim, Mohammad Sydul, 2021. "ESG activities and banking performance: International evidence from emerging economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 70(C).
    17. Ali, Mohsin & Azmi, Wajahat & Kowsalya, V. & Rizvi, Syed Aun R., 2023. "Interlinkages between stability, carbon emissions and the ESG disclosures: Global evidence from banking industry," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    18. Jin, Cheng & Luo, Shuangshuang & Sun, Kehan, 2023. "Energy Resources trade and investments for green growth: The case of Countries in the Asia-Pacific Economic Cooperation," Resources Policy, Elsevier, vol. 82(C).
    19. Yuan-Wei Du & Yi-Pin Fan, 2023. "Spatiotemporal Dynamics of Agricultural Sustainability Assessment: A Study across 30 Chinese Provinces," Sustainability, MDPI, vol. 15(11), pages 1-23, June.
    20. Tzouvanas, Panagiotis & Kizys, Renatas & Chatziantoniou, Ioannis & Sagitova, Roza, 2020. "Environmental disclosure and idiosyncratic risk in the European manufacturing sector," Energy Economics, Elsevier, vol. 87(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4159-:d:1395455. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.