Sustainable Development, Climate Change, and Green Finance in a Changing World

Dear Colleagues,

Since the Paris agreement, countries worldwide are implementing policies to reduce CO₂ emissions and limit increases in global temperature. Thus, the world must undergo a huge transformation from fossil fuel-based energy sources to ones that are based on environmentally friendly and renewable energy sources. This energy transition requires renewable energy development and energy efficiency to limit climate change and attain sustainable growth. All this comes with a crucial condition: re-aligning the financial system to increase the availability of finances to be used in environmental investments without compromising regional financial security.

In recent years, climate finance has been one of the growing concerns of the world climate summit. Many believe that “warming of the climate system is evident” and that “human impacts on the climate system are obvious.” Thus, actual and fast policies are crucial—almost mandatory—to address the climate change problem. The need for a new and better-financed global energy system has brought about some interesting financial innovations. Green investors make the world a better place by financing the needs of the energy transformation plan.

Scholars have investigated the difference between green bond (GB) yields and traditional bonds, especially in the US government bond market, and found that, on average, GB yields are lower than traditional bonds. However, in recent years, GBs are becoming an increasingly popular investment vehicle. Available evidence suggests that the performance of energy industries—especially clean energy markets—heavily impacts GB prices and returns. Nevertheless, different financial markets have their own spillover effect, economic explanation, and an intrinsic transmission mechanism.

From here comes the importance of examining the effects of the financial markets and energy dynamics on energy investment. Hence, the purpose of this issue is to assess the interplay between GB, financial markets, and energy dynamics. We do this especially after considering the turbulence in the global financial markets occurring after the 2008 financial crisis and the most recent COVID-19 outbreak.

While the main interest of this Special Issue is in contributions addressing the causal relationship between energy and financial markets, we will also consider submissions addressing related topics that examine the effects of financial markets and energy dynamics on:

- The development, adoption, and expansion of more environmentally friendly energy sources;

- Government policies and reforms related to renewable and alternative energy;

- Climate change;

- Mitigation and/or adaptation efforts/objectives;

- Countries development strategies;

- Geopolitical, institutional, international relations, and legal aspects of the increased usage of renewable energy sources.

Prof. Dr. Salaheddin Abosedra
Prof. Dr. Ali Fakih
Dr. Nagham Sayour
Dr. Usman Khalid
Guest Editors

Manuscript Submission Information

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• sustainable development
• climate change
• green finance
• sustainable investment
• renewable energy
• energy dynamics