The Effectiveness Of Green Bonds Issued By Banks In Facilitating The Low-Carbon Transition Of Economy

It examines the effectiveness of green bonds being measured and influences how low-carbon strategiesare implemented and evaluated. Support for sustainable financing and carbon reduction at banking institutions issignificantly affected by environmental and institutional factors. The aim of this study was to identify the level of greenbond effectiveness and its five dimensions namely environmental sustainability, carbon reduction financing, institutionalcommitment, financial performance, and policy compliance in commercial banks. The main purpose of this study was toexplore banking institutions’ perceptions of their environmental responsibilities and sustainable financing practices withintheir operational years as financial intermediaries. This study used quantitative design involving an iterative process offour cycles: data collection, matching procedure, structural analysis and model evaluation. A total of 240 respondentsfrom commercial banks were purposely selected and surveyed to obtain their perceptions on the sustainable financingpractices they received before and after their green bond implementation and the strategies that they employed withintheir low-carbon transition process. The results indicate that the strategies adopted in this research reasonably enabledstudents to be actively engaged in their learning process and sustainable awareness development among them. Theresultant propensity-score matching showed a better contribution to the structural model, providing support for thepredictive capability of the low-carbon framework. The findings and the implications for the improvement of banks’sustainability performance are discussed. This study provides some theoretical and practical implications for improvingthe banks’ financing strategies and their institutional development which aim to enhance the environmental qualities offuture banking systems.