A review of innovative bond instruments for sustainable development in Asia

Article


Prakash, N. and Sethi, M. 2022. A review of innovative bond instruments for sustainable development in Asia. International Journal of Innovation Science. 14 (3/4), pp. 630-647. https://doi.org/10.1108/IJIS-10-2020-0213
AuthorsPrakash, N. and Sethi, M.
Abstract

Purpose
Advancing the economies in Asia toward meeting sustainable development goals (SDGs) needs an unprecedented investment in people, processes and the planet. The participation of the private sector is necessary to bridge the financing gap to attain this objective. Engaging the private sector can contribute significantly to attaining the 2030 agenda for SD. However, the financial markets in Asian economies are yet to realize this potential. In this context, this paper aims to discuss the state of finance for SD in Asia and identifies innovative financial instruments for attracting private investments for SDs in these economies.

Design/methodology/approach
This study relies on published articles, reports and policy documents on financing mechanisms for SD. The literature review covered journal data sources, reports from global institutions such as the UN, World Bank, International Monetary Fund and think-tanks operating in the field of climate change policies. Though the topic was specific to financial market instruments, a broader search was conducted to understand the different sources of sustainable finance available, particularly in Asia.

Findings
The investments that are required for meeting the SDGs remain underfunded. Though interest in sustainability is growing in the Asian economies, the financial markets are yet to transition to tap the growing interest in sustainable investing among global investors. This paper concludes that to raise capital from private investors the Asian economies should ensure information availability, reduce distortions and unblock regulatory obstacles. It would also need designing policies and introducing blended financing instruments combining private and public funds.

Research limitations/implications
Though the study has grouped Asian economies, the financing strategy for SDGs should be developed at the country-level considering the domestic financial markets, local developmental stage, fiscal capacity and nationally determined contributions. Further research can focus on developing country-specific strategies for using innovative financial instruments.

Originality/value
Mobilizing funds for implementing the 2030 Agenda for SD is a major challenge for Asian economies. The paper is addressed to national policymakers in Asian economies for developing strategies to raise capital for SD through private participation. It provides opportunities for revisiting national approaches to sustainable finance in these economies.

KeywordsGreen bond; Sustainable finance; Green financing; Social bond; Sustainability bond
JournalInternational Journal of Innovation Science
Journal citation14 (3/4), pp. 630-647
ISSN1757-2223
Year2022
PublisherEmerald Publishing Limited
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1108/IJIS-10-2020-0213
Publication dates
Online05 May 2021
Print06 Sep 2021
Publication process dates
Deposited26 Feb 2024
Copyright holder© 2021, The Authors
Permalink -

https://repository.uel.ac.uk/item/8x59y

Download files


Accepted author manuscript
  • 64
    total views
  • 54
    total downloads
  • 0
    views this month
  • 4
    downloads this month

Export as

Related outputs

Moderating Role of Firm Characteristics on the Relationship between Corporate Social Responsibility and Financial Performance: Evidence from India
Prakash, N. 2024. Moderating Role of Firm Characteristics on the Relationship between Corporate Social Responsibility and Financial Performance: Evidence from India. Journal of Economics and Development. In Press. https://doi.org/10.1108/JED-01-2024-0025
Role of management education in adapting the Indian public sector to market-based economic reforms
Prakash, N. and Hawaldar, A. 2023. Role of management education in adapting the Indian public sector to market-based economic reforms. International Journal of Public Sector Management. 36 (4-5), pp. 315-332. https://doi.org/10.1108/IJPSM-01-2022-0003
Relationship between fixed capital formation and carbon emissions: Impact of trade liberalization in India
Prakash, N. and Sethi, M. 2023. Relationship between fixed capital formation and carbon emissions: Impact of trade liberalization in India. Cogent Economics and Finance. 11 (Art. 2245274). https://doi.org/10.1080/23322039.2023.2245274
Investigating the Determinants of Financial Well-Being: A SEM Approach
Prakash, N. and Hawaldar, A. 2023. Investigating the Determinants of Financial Well-Being: A SEM Approach. Business Perspectives and Research. 12 (1), pp. 11-25. https://doi.org/10.1177/22785337221148253
The impact of Covid-19 on the capital structure in emerging economies: evidence from India
Prakash, N., Meheshwari, A. and Hawaldar, A. 2023. The impact of Covid-19 on the capital structure in emerging economies: evidence from India. Asian Journal of Accounting Research. 8 (3), pp. 236-249. https://doi.org/10.1108/AJAR-05-2022-0144
Investigating the foreign trade-emission nexus in RCEP
Prakash, N. and Sethi, M. 2022. Investigating the foreign trade-emission nexus in RCEP. International Journal of Green Economics. 16 (3), pp. 219-234. https://doi.org/10.1504/IJGE.2022.128932
Emissions-foreign trade nexus: establishing the need to harmonize environment and economics in RCEP
Prakash, N. and Sethi, M. 2022. Emissions-foreign trade nexus: establishing the need to harmonize environment and economics in RCEP. Journal of Economic and Administrative Sciences. 40 (1), pp. 130-141. https://doi.org/10.1108/JEAS-04-2022-0093
Demographic characteristics influencing financial wellbeing: a multigroup analysis
Prakash, N., Alagarsamy, S. and Hawaldar, A. 2022. Demographic characteristics influencing financial wellbeing: a multigroup analysis. Managerial Finance. 48 (9-10), pp. 1334-1351. https://doi.org/10.1108/MF-09-2021-0466
The impact of external debt on economic growth in emerging economies: investigating the role of capital formation
Prakash, N. and Panigrahi, S. R. 2021. The impact of external debt on economic growth in emerging economies: investigating the role of capital formation . International Journal of Economic Policy in Emerging Economies. 19 (1), pp. 1-14. https://doi.org/10.1504/IJEPEE.2021.10036988
Does Gender and Family Income Impact Stock Trading of B-School Students? Findings from a Stock Simulation Exercise
Prakash, N. and Alagarsamy, A. 2021. Does Gender and Family Income Impact Stock Trading of B-School Students? Findings from a Stock Simulation Exercise. Vision: The Journal of Business Perspective. 26 (4), pp. 454-460. https://doi.org/10.1177/0972262921992591
Market reaction to dividend announcements during pandemic: An event study
Prakash, N. and Yogesh L. 2021. Market reaction to dividend announcements during pandemic: An event study. Vision: The Journal of Business Perspective. In Press. https://doi.org/10.1177/09722629211066288
Green Bonds Driving Sustainable Transition in Asian Economies: The Case of India
Prakash, N. and Sethi, M. 2021. Green Bonds Driving Sustainable Transition in Asian Economies: The Case of India. Journal of Asian Finance, Economics and Business. 8 (1), pp. 723-732. https://doi.org/10.13106/jafeb.2021.vol8.no1.723