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What are the determinants for financial institutions to mobilise climate finance?

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  • Toyo Kawabata

Abstract

As the climate finance flow is far behind the level needed to meet the target in the Paris Agreement, it is important to examine how to mobilise further climate finance. This paper conducted an empirical analysis on what determines climate finance engagement of financial institutions from the institutionally focused perspective that considers the external pressures and the internal governance. Publicly available information of 102 global financial institutions was used to apply a multiple regression analysis. The results confirm that there is influence of international climate finance initiatives on financial institutions with regard to the mobilisation of climate finance, whereas senior management engagement on climate change also encourages the higher commitment to climate finance from financial institutions. The result leaves behind an important implication for fragmented climate governance: the engagement of climate finance initiatives has a facilitative role to provide pressures on financial institutions to mobilise climate finance.

Suggested Citation

  • Toyo Kawabata, 2019. "What are the determinants for financial institutions to mobilise climate finance?," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 9(4), pages 263-281, October.
  • Handle: RePEc:taf:jsustf:v:9:y:2019:i:4:p:263-281
    DOI: 10.1080/20430795.2019.1611148
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    Cited by:

    1. Aghilasse Kashi & Mohamed Eskandar Shah, 2023. "Bibliometric Review on Sustainable Finance," Sustainability, MDPI, vol. 15(9), pages 1-30, April.
    2. Marc Ringel & Saranda Mjekic, 2023. "Analyzing the Role of Banks in Providing Green Finance for Retail Customers: The Case of Germany," Sustainability, MDPI, vol. 15(11), pages 1-24, May.

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