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Fostering Green Finance for Sustainable Development in Asia

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  • Ulrich Volz

    (Asian Development Bank Institute)

Abstract

Placing the Asian economies onto a sustainable development pathway requires an unprecedented shift in investment away from greenhouse gas, fossil fuel, and natural resource intensive industries towards more resource efficient technologies and business models. The financial sector will have to play a central role in this ‘green transformation’. This study discusses the need for greening the financial system and the role of financial governance. It reviews the state of green lending and investment in Asia and provides an overview of green financial governance initiatives across Asia. It also identifies market innovations to increase green finance in Asia, barriers to green investments, and financial policy and highlights priority areas for policy makers.

Suggested Citation

  • Ulrich Volz, 2018. "Fostering Green Finance for Sustainable Development in Asia," ADBI Working Papers 814, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0814
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Li, Yueshan & Mao, Jinzhou & Chen, Shoudong & Yang, Dongliang, 2022. "Tax-reducing incentive and corporate green performance: What we learn from China," Renewable Energy, Elsevier, vol. 199(C), pages 791-802.
    3. Jawadi, Fredj & Pondie, Thierry M. & Cheffou, Abdoulkarim Idi, 2025. "New challenges for green finance and sustainable industrialization in developing countries: A panel data analysis," Energy Economics, Elsevier, vol. 142(C).
    4. Susanne Durst & Wolfgang Gerstlberger, 2020. "Financing Responsible Small- and Medium-Sized Enterprises: An International Overview of Policies and Support Programmes," JRFM, MDPI, vol. 14(1), pages 1-23, December.
    5. Bei, Jinlan & Wang, Chunyu, 2023. "Renewable energy resources and sustainable development goals: Evidence based on green finance, clean energy and environmentally friendly investment," Resources Policy, Elsevier, vol. 80(C).
    6. Shixian Ling & Guosheng Han & Dong An & William Cannon Hunter & Hui Li, 2020. "The Impact of Green Credit Policy on Technological Innovation of Firms in Pollution-Intensive Industries: Evidence from China," Sustainability, MDPI, vol. 12(11), pages 1-16, June.
    7. Fatema Khairunnessa & Diego A. Vazquez-Brust & Natalia Yakovleva, 2021. "A Review of the Recent Developments of Green Banking in Bangladesh," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    8. Dikau, Simon & Volz, Ulrich, 2021. "Central bank mandates, sustainability objectives and the promotion of green finance," Ecological Economics, Elsevier, vol. 184(C).
    9. Guangyou Zhou & Chen Liu & Sumei Luo, 2021. "Resource Allocation Effect of Green Credit Policy: Based on DID Model," Mathematics, MDPI, vol. 9(2), pages 1-18, January.
    10. Yang, Qin & Du, Qiang & Razzaq, Asif & Shang, Yunfeng, 2022. "How volatility in green financing, clean energy, and green economic practices derive sustainable performance through ESG indicators? A sectoral study of G7 countries," Resources Policy, Elsevier, vol. 75(C).
    11. Lei Xu & Chen Ma & Bin Li & Fei Guo, 2023. "Green loans and the transformation of heavy polluters: evidence from China," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(4), pages 884-911, December.
    12. Chen, Kun & Bian, Rui, 2023. "Green financing and renewable resources for China's sustainable growth: Assessing macroeconomic industry impact," Resources Policy, Elsevier, vol. 85(PA).
    13. Qingxian Jia, 2023. "The impact of green finance on the level of decarbonization of the economies: An analysis of the United States', China's, and Russia's current agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 110-119, January.
    14. Hunjra, Ahmed Imran & Hassan, M. Kabir & Zaied, Younes Ben & Managi, Shunsuke, 2023. "Nexus between green finance, environmental degradation, and sustainable development: Evidence from developing countries," Resources Policy, Elsevier, vol. 81(C).
    15. Damian Tobin & Ulrich Volz, 2018. "The Development and Transformation of the People’s Republic of China’s Financial System," ADBI Working Papers 825, Asian Development Bank Institute.
    16. Hammna Jillani & Muhammad Nawaz Chaudhry & Hesan Zahid & Muhammad Navid Iqbal, 2024. "The mediating role of stakeholders on green banking practices and bank’s performance: The case of a developing nation," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-17, May.
    17. Nana Liu & Chuanzhe Liu & Yufei Xia & Yi Ren & Jinzhi Liang, 2020. "Examining the Coordination Between Green Finance and Green Economy Aiming for Sustainable Development: A Case Study of China," Sustainability, MDPI, vol. 12(9), pages 1-26, May.
    18. Ma, Dan & Zhu, Yanjin & Yang, Yuhan, 2024. "How Green finance affects export production quality: Fresh evidence from China," Energy Economics, Elsevier, vol. 131(C).
    19. Magdalena Ziolo & Beata Zofia Filipiak & Iwona Bąk & Katarzyna Cheba & Diana Mihaela Tîrca & Isabel Novo-Corti, 2019. "Finance, Sustainability and Negative Externalities. An Overview of the European Context," Sustainability, MDPI, vol. 11(15), pages 1-35, August.

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    More about this item

    Keywords

    green investments; green finance; sustainable development; green transformation; Asia;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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