Topic Editors

Prof. Dr. Otilia Manta
Department of Research, Romanian American University, 012101 Bucharest, Romania
Dr. Maria Palazzo
School of Management, Universitas Mercatorum, Rome, Italy

Sustainable and Green Finance

Abstract submission deadline
31 July 2026
Manuscript submission deadline
31 October 2026
Viewed by
33284

Topic Information

Dear Colleagues,

We are pleased to invite you to submit your research for the Topic titled “Sustainable and Green Finance”. As the world faces increasing environmental challenges, the importance of aligning financial systems with sustainability goals has never been greater. This Topic aims to explore innovative approaches, strategies, and policies that can contribute to building a greener and more sustainable financial system.

The financial sector plays a crucial role in supporting the transition toward a more sustainable economy. By allocating capital to environmentally responsible projects, promoting green investments, and developing sustainable financial products, it can help address pressing issues such as climate change, resource depletion, and social inequality. We seek high-quality research that will deepen our understanding of how sustainable and green finance can contribute to the global effort toward achieving long-term environmental, social, and governance (ESG) goals.

This Topic aims to address the evolving landscape of sustainable and green finance. We welcome both theoretical and empirical contributions that explore the various aspects of sustainable financial practices, policies, and instruments. Our goal is to foster discussions on how financial systems can support the transition to low-carbon economies and integrate sustainability principles into investment decisions, risk management, and corporate governance.

The scope covers a wide range of topics related to sustainable finance, including the development of green financial instruments, the role of regulatory frameworks, the impact of ESG factors on financial performance, and the design of sustainable investment strategies. We are particularly interested in studies that offer actionable insights into how financial markets can facilitate environmental sustainability and social responsibility, ensuring a fair transition to a more resilient economy.

Key areas of interest include, but are not limited to, the following:

  • green bonds, green loans, and other sustainable financial products;
  • ESG integration in financial decision-making and asset pricing;
  • regulatory frameworks and policies promoting sustainable finance;
  • climate finance and funding mechanisms for low-carbon transitions;
  • the role of central banks and financial institutions in fostering sustainability;
  • risk assessment, reporting, and disclosure of ESG risks;
  • impact investing and socially responsible investment strategies;
  • technological innovations (e.g., blockchain) supporting sustainable finance;
  • corporate sustainability, governance, and stakeholder engagement;
  • financial inclusion and sustainable development in emerging markets.

We look forward to receiving your valuable contributions to this important topic and to advancing the discussion on how finance can contribute to a more sustainable and equitable future.

Prof. Dr. Otilia Manta
Dr. Maria Palazzo
Topic Editors

Keywords

  • sustainable finance
  • green finance
  • ESG (environmental, social, governance)
  • green bonds
  • climate finance
  • impact investing
  • sustainable development
  • financial regulation
  • low-carbon economy
  • corporate governance

Participating Journals

Journal Name Impact Factor CiteScore Launched Year First Decision (median) APC
Businesses
businesses
- - 2021 24.4 Days CHF 1000 Submit
Economies
economies
2.1 4.7 2013 23.1 Days CHF 1800 Submit
International Journal of Financial Studies
ijfs
2.2 4.6 2013 19.7 Days CHF 1800 Submit
Journal of Risk and Financial Management
jrfm
- 5.0 2008 18.8 Days CHF 1600 Submit
Sustainability
sustainability
3.3 7.7 2009 17.9 Days CHF 2400 Submit

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Published Papers (15 papers)

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45 pages, 5388 KB  
Article
Liquidity and Market Microstructure of Tokenized Carbon Assets Trading in Blockchain-Based Voluntary Carbon Markets: A Mean-Centered MMRM with HAC Corrections
by Sukmawati Sukamulya and Veronica Tri Kusuma
J. Risk Financial Manag. 2026, 19(5), 331; https://doi.org/10.3390/jrfm19050331 - 3 May 2026
Viewed by 111
Abstract
This study investigates how on-chain trading activity influences liquidity and market microstructure in blockchain-based voluntary carbon markets (VCMs) while accounting for the regulation index as a conditioning factor. Using mean-centered MMRM with HAC corrections on daily data for $KLIMA, BCT, and MCO2, the [...] Read more.
This study investigates how on-chain trading activity influences liquidity and market microstructure in blockchain-based voluntary carbon markets (VCMs) while accounting for the regulation index as a conditioning factor. Using mean-centered MMRM with HAC corrections on daily data for $KLIMA, BCT, and MCO2, the results indicate that liquidity is associated with distinct trading channels across tokens. Transaction value is positively associated with market depth, while fragmented trading intensity is associated with wider bid-ask spreads. Market expansion is further linked to higher price volatility, particularly in structurally thin markets. The regulation index predominantly acts as a homologizer moderator, reinforcing existing relationships rather than fundamentally altering their direction, with stronger conditioning effects observed in thinner markets. Overall, the findings suggest that liquidity in tokenized carbon markets is more closely associated with market microstructure, trading behavior, and token design than with underlying carbon asset fundamentals. By integrating on-chain trading metrics with macro-structural regulatory conditions in a high-frequency framework, this study provides new evidence on how liquidity emerges in decentralized carbon markets under heterogeneous structural constraints. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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24 pages, 622 KB  
Article
How Do IFRS S2 Climate Risks Affect IAS 36 Impairments? A Constructive Accounting Framework Calibrated to European Steel
by Khaled Muhammad Hosni Sobehy, Lassaad Ben Mahjoub and Sahbi Gabsi
J. Risk Financial Manag. 2026, 19(4), 272; https://doi.org/10.3390/jrfm19040272 - 8 Apr 2026
Viewed by 760
Abstract
A major connectivity gap arises from the misalignment between the forward-looking climate disclosures required by IFRS S2 and the historically rooted asset valuations mandated by IAS 36. This misalignment can cause the overvaluation of carbon-intensive assets and disrupt capital allocation decisions. This research [...] Read more.
A major connectivity gap arises from the misalignment between the forward-looking climate disclosures required by IFRS S2 and the historically rooted asset valuations mandated by IAS 36. This misalignment can cause the overvaluation of carbon-intensive assets and disrupt capital allocation decisions. This research specifically examines transition risks, such as carbon pricing, regulatory shocks, and technological disruption, and quantifies the financial externality using a combination of deterministic impairment testing and stochastic climate scenarios. We create a constructive framework and develop a model of a Synthetic Representative Firm, calibrated to major integrated steel producers in Europe. To generate nonlinear Green Swan shocks for Value-in-Use, the process combines Monte Carlo simulation with the Merton Jump-Diffusion model. This comparison shows the difference between the steady Management View and the volatile Market View. Empirical results reveal a material Sustainability Discount, representing a substantial erosion in the recoverable amount under IFRS S2 transition risk scenarios compared to the IAS 36 Deterministic Baseline. Simulations show a strong probability of asset stranding due to restricted cost pass-through, indicating that older assets may face elevated impairment risks under disorderly transition scenarios. Traditional deterministic models may not fully capture aspects of Double Materiality, potentially leaving balance sheets less responsive to transition risks. Integrating digitalization and the Circular Carbon Economy (CCE) framework presents a strategic method for averting value destruction. Therefore, this research supports the integration of stochastic transition risk modeling into impairment testing to achieve faithful financial representation. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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32 pages, 1832 KB  
Article
The Effect of Green Credit Policies on Sustainable Innovation: Evidence and Mechanisms from China
by Jue Wang, Xiao Sun and Wanxia Qi
Sustainability 2026, 18(2), 784; https://doi.org/10.3390/su18020784 - 13 Jan 2026
Cited by 1 | Viewed by 781
Abstract
This study examines how green credit policies, specifically the green credit guidelines (GCGs) implemented in 2012, influence corporate sustainable innovation. This study employs a quasi-natural experiment approach, utilizing data from Chinese listed companies between 2005 and 2023, to examine the differential impact of [...] Read more.
This study examines how green credit policies, specifically the green credit guidelines (GCGs) implemented in 2012, influence corporate sustainable innovation. This study employs a quasi-natural experiment approach, utilizing data from Chinese listed companies between 2005 and 2023, to examine the differential impact of the GCGs on high-polluting enterprises versus energy-efficient enterprises. The study uses a Difference-in-Differences (DID) methodology to explore how policy-induced changes in financing conditions affect firms’ innovation behaviors, particularly in terms of green patent applications. This study uses a mechanism to understand the role of R&D investment and access to long-term financing in driving these changes. And this study considers heterogeneity across firm ownership types and industry competition to investigate the varying effects of the GCGs. By identifying the causal pathways through which green credit policies influence innovation, this study contributes to the understanding of how environmental policies shape corporate behavior and innovation outcomes. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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24 pages, 1418 KB  
Review
A Review of Gender-Inclusive Green Microfinance Business Models in Tunisia: A Business Model Canvas Perspective
by Nadia Mansour
Int. J. Financial Stud. 2026, 14(1), 19; https://doi.org/10.3390/ijfs14010019 - 9 Jan 2026
Viewed by 905
Abstract
This paper presents a systematic review of Tunisian stakeholders’ perceptions of integrating gender into green microfinance business models, analyzed through the lens of the Business Model Canvas (BMC). This systematic review of 32 studies indicates a dual perception of women as both vulnerable [...] Read more.
This paper presents a systematic review of Tunisian stakeholders’ perceptions of integrating gender into green microfinance business models, analyzed through the lens of the Business Model Canvas (BMC). This systematic review of 32 studies indicates a dual perception of women as both vulnerable victims and active agents in the ecological transition. The BMC-based analysis reveals major weaknesses in the value proposition, distribution channels, and cost structures of gendered green microfinance offerings. Furthermore, we highlight the underexplored role of regulatory frameworks as levers for business model innovation. This study offers an original analytical framework that links gender, environmental sustainability, and microfinance business models, providing actionable insights for policymakers and microfinance institutions seeking to foster inclusive and sustainable financial ecosystems in Tunisia and similar contexts. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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26 pages, 3813 KB  
Article
Deep Learning for the Greenium: Evidence from Green Bonds, Risk Disclosures, and Market Sentiment
by Meryem Raissi, Abdelhadi Darkaoui, Souhail Admi and Hind Bouzid
J. Risk Financial Manag. 2025, 18(12), 717; https://doi.org/10.3390/jrfm18120717 - 16 Dec 2025
Viewed by 1160
Abstract
This study examines how physical and transition climate risks affect the greenium, assuming that implied volatility serves as a proxy for investor sentiment generated by these risks. Applying a Gated Recurrent Unit (GRU) deep learning model to daily data from January 2020 to [...] Read more.
This study examines how physical and transition climate risks affect the greenium, assuming that implied volatility serves as a proxy for investor sentiment generated by these risks. Applying a Gated Recurrent Unit (GRU) deep learning model to daily data from January 2020 to June 2025 with a rigorous train–test split to get around the drawbacks of full-sample estimations and guarantee strong out-of-sample generalizability is a significant empirical contribution. Our findings show that adding the interaction between these climate risks and the sentiment proxy slightly increases predictive power. The GRU model outperforms random forest and linear regression benchmarks in terms of generalizability, but it remains sensitive to different data splits and hyperparameter tuning. This highlights the use of complex, non-linear models for risk forecasting and portfolio allocation for investors and risk managers, as well as the need for regular climate disclosure for policymakers to reduce information asymmetry. The GRU’s stringent validation framework directly enables more reliable pricing and exposure management. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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24 pages, 388 KB  
Article
The Determinants of Green Bond Issuance in Indonesia: An Analysis of Sustainable Financial Instruments
by Endri Endri, Irwan Mangara Harahap and Anton Hindardjo
J. Risk Financial Manag. 2025, 18(12), 672; https://doi.org/10.3390/jrfm18120672 - 26 Nov 2025
Cited by 2 | Viewed by 2630
Abstract
Green Bonds (GBs) have emerged as one of the most prominent innovations in sustainable finance instruments in recent times, necessitating an understanding of the factors determining their issuance. However, empirical literature on the factors driving GB issuance in Indonesia is limited. This study [...] Read more.
Green Bonds (GBs) have emerged as one of the most prominent innovations in sustainable finance instruments in recent times, necessitating an understanding of the factors determining their issuance. However, empirical literature on the factors driving GB issuance in Indonesia is limited. This study aims to investigate the impact of bond characteristics and macroeconomic factors on Government and Corporate Bond issuance from 2018 to 2023 using a random-effects panel regression model. The results confirm that all factors, except economic growth, have a significant effect on GB issuance; however, the impact of some factors differs between government-issued GBs and corporate-issued GBs. Among them, the green stock market and exchange rate have a positive effect on Corporate GB issuance, but the opposite is true for Government GB issuance. Furthermore, increases in interest rates and coupon rates encourage more government GB issuance but have the opposite effect on Corporate GB issuance. Our results contribute to the literature on sustainable finance, providing policymakers, issuers, and investors with valuable practical insights to encourage the development of the green bond market. Full article
(This article belongs to the Topic Sustainable and Green Finance)
22 pages, 1090 KB  
Article
The Impacts of Green Finance Reforms on Urban Energy Efficiency in China
by Weijia Shao and Weiming Sun
Sustainability 2025, 17(21), 9678; https://doi.org/10.3390/su17219678 - 30 Oct 2025
Viewed by 974
Abstract
To evaluate the effectiveness of green finance, this study treats China’s green finance reform and innovation pilot zones as a quasi-natural experiment to assess their impact on urban energy efficiency. This research utilizes a panel dataset of 282 Chinese prefecture-level cities from 2010 [...] Read more.
To evaluate the effectiveness of green finance, this study treats China’s green finance reform and innovation pilot zones as a quasi-natural experiment to assess their impact on urban energy efficiency. This research utilizes a panel dataset of 282 Chinese prefecture-level cities from 2010 to 2023 and employs a multi-period difference-in-differences (DID) model. The core dependent variable, urban green total factor energy efficiency (UGTFEE), is quantified using a non-radial Slack-Based Measure (SBM) efficiency model combined with the Malmquist-Luenberger index. The empirical findings reveal four key points. First, the green finance pilot zones significantly enhance UGTFEE, with policy-affected cities demonstrating an average improvement of approximately 2.0% relative to non-pilot cities. Second, this positive impact is transmitted through two primary mechanisms: the advancement of green technology research and development and the deepening of financial market development. Third, the policy’s effectiveness is heterogeneous, varying according to regional characteristics such as geographical location, environmental regulation stringency, and resource endowments. Finally, a negative spatial spillover is identified, wherein the policy creates a siphoning effect that competitively suppresses the UGTFEE of neighboring cities. These findings provide critical theoretical insights and empirical evidence for optimizing green finance initiatives, thereby facilitating urban industrial transformation toward greater green energy efficiency. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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27 pages, 337 KB  
Article
Building Sustainable Financial Capacity: How Supply Chain Digitalization Facilitates Credit Access by Adjustment Capability
by Fan Wu and Kaifeng Duan
Sustainability 2025, 17(20), 9265; https://doi.org/10.3390/su17209265 - 18 Oct 2025
Cited by 2 | Viewed by 1625
Abstract
In the context of the deep restructuring of the global industrial chain and the concurrent pursuit of green and sustainable development, enterprises need to secure long-term, reliable supply chain competitiveness. The burgeoning wave of digitalization is simultaneously reshaping industry landscapes. Based on a [...] Read more.
In the context of the deep restructuring of the global industrial chain and the concurrent pursuit of green and sustainable development, enterprises need to secure long-term, reliable supply chain competitiveness. The burgeoning wave of digitalization is simultaneously reshaping industry landscapes. Based on a sample of the Chinese manufacturing sector, this study explores how supply chain digital transformation enhances commercial credit financing performance by improving corporate adjustment capability. The research finds that supply chain digital transformation strengthens a firm’s commercial credit financing capacity through a dual-core mediating mechanism of corporate adjustment capability: (1) enhancing the adjustment capability of operational management, which mitigates the negative impact of cost stickiness on financing; (2) enhancing the adjustment capability of organizational management, which amplifies the positive effect of organizational resilience on financing. The study further reveals key moderating effects: (1) External Governance: Strong ESG performance strengthens the financing effect of digitalization by building reputational capital. High industry competition strengthens the financing effect by prompting firms to optimize operational efficiency. (2) Internal Endowments: Environmental risk aversion stemming from a firm’s polluting nature significantly weakens the credit supply effect of digitalization. The market-oriented foundation underpinning private ownership effectively activates the credit supply effect of digitalization. This study constructs an integrated pathway model of “Digital Transformation–Corporate Adjustment Capability–Supply Chain Credit Access.” It provides a research perspective for understanding how digitalization reshapes the logic of supply chain finance and offers empirical evidence for pathways empowering enterprises through digital transformation. Full article
(This article belongs to the Topic Sustainable and Green Finance)
21 pages, 1185 KB  
Article
How Green Finance Reform Narrows the Urban-Rural Income Gap: Evidence from China
by Huiji Wang
Sustainability 2025, 17(18), 8344; https://doi.org/10.3390/su17188344 - 17 Sep 2025
Cited by 2 | Viewed by 1879
Abstract
Addressing the persistent urban-rural income gap is critical for sustainable and inclusive development. Leveraging panel data from 286 Chinese prefecture-level cities (2005–2022) and a multi-period difference-in-differences design, this study evaluates the impact of China’s Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policy. [...] Read more.
Addressing the persistent urban-rural income gap is critical for sustainable and inclusive development. Leveraging panel data from 286 Chinese prefecture-level cities (2005–2022) and a multi-period difference-in-differences design, this study evaluates the impact of China’s Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policy. First, the GFRIPZ policy significantly narrows the urban-rural income gap, with results robust to a range of sensitivity tests. Second, this convergence is driven by curbing conventional transport-infrastructure expansion and enhancing tertiary-sector employment, thereby improving labor quality. Third, policy effectiveness varies geographically and administratively, with the strongest impacts in central and western regions and non-provincial capitals. Fourth, negative spatial spillovers arise as pilot zones draw resources from neighboring non-pilot areas. These findings highlight the transformative potential of targeted green finance reforms for inclusive structural transformation in emerging economies. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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23 pages, 687 KB  
Article
How Does Green Financial Reform Impact Carbon Emission Reduction and Pollutant Mitigation in Chinese Manufacturing Enterprises?
by Bingnan Guo, Baoliang Zhan and Mengyu Wang
Sustainability 2025, 17(17), 7709; https://doi.org/10.3390/su17177709 - 27 Aug 2025
Cited by 2 | Viewed by 1253
Abstract
Manufacturing enterprises, as significant contributors to high carbon emissions, play a crucial role in effectively reducing carbon emission intensity, which is essential for China to successfully achieve its “dual carbon” goals. This study examines the period from 2010 to 2022, focusing on manufacturing [...] Read more.
Manufacturing enterprises, as significant contributors to high carbon emissions, play a crucial role in effectively reducing carbon emission intensity, which is essential for China to successfully achieve its “dual carbon” goals. This study examines the period from 2010 to 2022, focusing on manufacturing enterprises listed on the Shanghai and Shenzhen A-shares to investigate the effects of green financial reform on carbon and pollutant emissions. Our findings reveal that the results from the parallel trend test and the regression analysis of the Difference-in-Differences (DID) model indicate that the implementation of green financial reform has a negative impact on the carbon and pollutant emissions of manufacturing enterprises, which is supported by a series of robustness tests. Heterogeneity analysis shows that the emission reduction effect of green financial reform on pollutants is significant only in manufacturing enterprises with low industry competitiveness, while the inhibitory effect on carbon emissions is significant only in those with high industry competitiveness. Furthermore, the emission reduction effects are significant in highly polluting industries, non-state-owned enterprises, and small-scale firms. Green technological innovation and financing constraints serve as the channels connecting green financial reform with emission reduction and carbon mitigation. The tax burden negatively moderates this process, while environmental, social, and governance (ESG) performance positively moderates it. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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19 pages, 303 KB  
Article
Can Green Funds Improve Corporate Carbon Performance? Firm-Level Evidence from China
by Pengcheng Wang and Shanyue Jin
Sustainability 2025, 17(12), 5409; https://doi.org/10.3390/su17125409 - 11 Jun 2025
Cited by 2 | Viewed by 2189
Abstract
Intensifying challenges posed by global warming have elevated the urgency of improving corporate carbon performance and curbing carbon emissions. Green financial instruments serve a vital function in advancing corporate transitions toward environmentally responsible and low-carbon operational models. This research explores the influence of [...] Read more.
Intensifying challenges posed by global warming have elevated the urgency of improving corporate carbon performance and curbing carbon emissions. Green financial instruments serve a vital function in advancing corporate transitions toward environmentally responsible and low-carbon operational models. This research explores the influence of green funds on carbon performance at the firm level, aiming to clarify the micro-level mechanisms through which green financial instruments promote low-carbon development. The study utilizes data from Chinese listed companies spanning 2012 to 2021 and employs a TWFE regression model to empirically assess the effects. The findings indicate that green funds contribute to improved carbon performance. Furthermore, this effect is positively moderated by executive green awareness and financial background, indicating that managerial cognition and experience play a vital role in amplifying the benefits of green finance. Notably, green funds exert a stronger positive effect in highly polluting industries, suggesting that green financial resources should be directed not only to low-emission sectors but also to high-emission ones to improve their carbon efficiency. These findings extend existing literature by offering firm-level evidence on the effectiveness of green financial instruments and underscore the importance of targeted policy support to encourage green upgrading across all industry types. Full article
(This article belongs to the Topic Sustainable and Green Finance)
28 pages, 440 KB  
Article
Impact of Sustainable Finance on Business Financial Performance: Insight from London Stock Exchange Firms
by Hani A. Omran Elarabi and Wagdi Khalifa
Sustainability 2025, 17(11), 4898; https://doi.org/10.3390/su17114898 - 27 May 2025
Cited by 3 | Viewed by 8278
Abstract
The United Kingdom has enacted rules to support green investment, enhancing the financial sustainability of enterprises adopting sustainable practices. These enactments offer financial incentives to enterprises that invest in sustainable initiatives. Companies that do not adopt sustainable practices face increasing operating expenses, a [...] Read more.
The United Kingdom has enacted rules to support green investment, enhancing the financial sustainability of enterprises adopting sustainable practices. These enactments offer financial incentives to enterprises that invest in sustainable initiatives. Companies that do not adopt sustainable practices face increasing operating expenses, a declining market share, and diminished investor trust. This study leveraged the stakeholder theory to examine the impact of sustainable finance on business financial performance. The study focused on 143 non-financial companies listed on the London Stock Exchange, using 17 years of data between 2008 and 2024 obtained from Thomson Reuters Eikon DataStream. The data were analyzed using the two-step Generalized Method of Estimation (GMM) due to endogeneity identified in the data. The study discovered that green financing initiatives, policies for emission reduction, and sustainable product initiatives had a positive and significant impact on business financial performance. The study also revealed that environmental investment initiatives negatively and significantly impacted business financial performance. Investing in green finance and sustainable products enhances financial performance by fostering investor trust and bolstering corporate reputation, fortifying firms. Adhering to international sustainability standards promotes long-term value creation and market alignment. To mitigate financial strain, environmental investments necessitate stringent cost management. An equitable strategy ensures that, by mitigating risks, sustainability measures enhance profitability. By meticulously integrating these projects, companies can achieve environmental and financial benefits while sustaining a competitive advantage in a rapidly evolving corporate landscape. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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35 pages, 3634 KB  
Article
Ripple Effect or Spatial Interaction? A Spatial Analysis of Green Finance and Carbon Emissions in the Yellow River Basin
by Jiayu Ru, Lu Gan and Gulinaer Yusufu
Sustainability 2025, 17(10), 4713; https://doi.org/10.3390/su17104713 - 20 May 2025
Cited by 2 | Viewed by 1294
Abstract
Grounded in the theory of new economic geography, this research develops a comprehensive theoretical framework to examine the spatial interaction mechanisms between the Green Finance Index and carbon emissions. Employing a range of econometric techniques—including three-dimensional kernel density estimation, spatial quantile regression, bivariate [...] Read more.
Grounded in the theory of new economic geography, this research develops a comprehensive theoretical framework to examine the spatial interaction mechanisms between the Green Finance Index and carbon emissions. Employing a range of econometric techniques—including three-dimensional kernel density estimation, spatial quantile regression, bivariate spatial autocorrelation analysis, and the spatial linkage equation model—the dynamic evolution, spatial pattern shifts, and mutual influences of green finance and carbon emissions in the middle and lower reaches of the Yellow River from 2003 to 2022 are systematically assessed. The findings indicate that (1) both carbon emissions and the Green Finance Index have experienced a trajectory of continuous growth, phased decline, and structural optimization, accompanied by a gradual shift in the regional center of gravity from coastal economic zones towards resource-intensive and traditional industry-concentrated areas; (2) significant spatial clustering is evident for both green finance and carbon emissions, demonstrating a strong spatial correlation and regional synergy effects; (3) a persistent negative spatial correlation exists between green finance and carbon emissions; and (4) green finance exerts a stable negative spatial spillover effect on carbon emissions, suggesting that the influence of green finance extends beyond localities to adjacent regions through spatial externalities, manifesting pronounced spatial transmission and linkage characteristics. By unveiling the bidirectional spatial association between green finance and carbon emissions, this study highlights the pivotal role of green finance in driving regional low-carbon transitions. The results provide theoretical insights for optimizing green finance policies within the Yellow River Basin and offer valuable international references for similar regional low-carbon development initiatives. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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30 pages, 1617 KB  
Article
Does Green Finance Facilitate the Upgrading of Green Export Quality? Evidence from China’s Green Loan Interest Subsidies Policy
by Jinming Shi, Jia Li, Shuai Jiang, Yingqian Liu and Xiaoyu Yin
Sustainability 2025, 17(10), 4375; https://doi.org/10.3390/su17104375 - 12 May 2025
Cited by 3 | Viewed by 2397
Abstract
In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade [...] Read more.
In the global pursuit of sustainable development and climate change mitigation, reconciling export growth with environmental protection has emerged as a universal challenge. As the world’s largest developing economy, China has traditionally relied on a resource-intensive development model to fuel rapid foreign trade growth. However, this extensive growth pattern has not only led to environmental pollution domestically but has also encountered hurdles from international green trade barriers. Finance, as a key driver of stable economic growth, plays a pivotal role in achieving high-quality trade development. Against this backdrop, the Chinese government has introduced the green credit interest subsidies policy. This policy aims to coordinate government financial resources and guide capital toward green production, alleviating financing constraints and fostering the upgrading of export product quality. Utilizing data from the World Bank, China Customs statistics, and provincial panels from 2011 to 2020, this study employs a multi-period difference-in-differences (DID) model to examine the causal impact of the green credit subsidies policy on efforts to upgrade the export quality of green products across China’s regions. The benchmark regression results indicate that the green credit interest subsidies policy has significantly improved the export quality of green products across China’s manufacturing industries. Heterogeneity analysis shows that this policy has had a more pronounced positive impact on green product quality in industries with quality-based competition strategies, in regions with well-coordinated local finance and financial policies, as well as in countries that have concluded environmental clauses with China. Mechanism analysis reveals that, on the export side, the policy enhances green product quality by easing financing constraints, increasing green credit, boosting productivity, and upgrading industrial structures. On the import side, the policy promotes green product quality by expanding the scale, variety, and quality of green intermediate goods. This research offers valuable insights for developing countries aiming to establish export-oriented green transformation and upgrading strategies. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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29 pages, 316 KB  
Article
Macro Stewardship: A Transformative Approach in Sustainable Finance for Achieving Sustainability
by Diana George, Ian Christie and Walter Wehrmeyer
Sustainability 2025, 17(8), 3287; https://doi.org/10.3390/su17083287 - 8 Apr 2025
Cited by 1 | Viewed by 2781
Abstract
This conceptual paper introduces Macro Stewardship (Ma-S) as a transformative approach in sustainable finance to challenge financial market failures that contribute to systemic collective action issues such as climate change, biodiversity loss, and inequality. It argues that traditional Environmental, Social, and Governance (ESG) [...] Read more.
This conceptual paper introduces Macro Stewardship (Ma-S) as a transformative approach in sustainable finance to challenge financial market failures that contribute to systemic collective action issues such as climate change, biodiversity loss, and inequality. It argues that traditional Environmental, Social, and Governance (ESG) strategies focus on individual corporate actions and often fail to drive systemic change. Ma-S, on the other hand, leverages the power of financial institutions to engage governments, policymakers, and stakeholders in addressing market failures tied to sustainability. Unlike Micro Stewardship (Mi-S) or ESG approach, which centers on corporate-level engagement, Ma-S promotes collaborative interventions to align the interests of businesses, governments, and society. This approach aims to influence regulatory changes, shape public policy, and support the United Nations Sustainable Development Goals (SDGs). The paper is guided by the research question: How can Macro Stewardship by financial institutions serve as a transformative approach in sustainable finance to achieve systemic change? It proposes a definition for Ma-S, outlines its practical applications, identifies implementation challenges, and presents a research agenda to evaluate its effectiveness and impact. In doing so, the paper lays a foundation for future empirical studies and calls for a shift in how financial systems contribute to global sustainability. Full article
(This article belongs to the Topic Sustainable and Green Finance)
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