The Relation Between Sustainable Finance Mechanisms, Instruments and Sustainable Development

Abstract

The purpose of this research is to determine the function, instruments and the effects of sustainable finance in the outlined procedures for achieving sustainable development goals. Sustainable Finance is a phenomena of local or global funding of investments that promote sustainable development goals and aim to mitigate or adapt to climate change. Despite traditional finance's risk and return ideas, the goal of sustainable finance is to fund investments that are concerned with environmental, social, and governance (ESG) challenges. It is critical to debate whether and how financial structures should contribute to long-term development. The study looked into the detrimental impacts of the current Covid 19 pandemic in the field of sustainable finance, as well as many other areas.

Keywords

• Climate Change
• Sustainable Development
• Sustainable Finance
• Covid-19

Sürdürülebilir Finans Mekanizmaları, Araçları ve Sürdürülebilir Kalkınma İlişkisi

Abstract

Bu çalışmanın amacı, sürdürülebilir finansın, sürdürülebilir kalkınma hedeflerine ulaşmak için belirlenen süreçlerdeki fonksiyonunu, araçlarını ve etkilerini tanımlamaktır. Sürdürülebilir finans, sürdürülebilir kalkınma hedeflerini destekleyen ve iklim değişikliğini azaltmayı ya da iklim değişikliğine uyum sağlamayı amaçlayan yatırımların yerli ya da küresel olarak finanse edilmesi ile ilgili bir kavramdır. Geleneksel finansın risk ve getiri kavramlarının aksine, sürdürülebilir finansın amacı çevresel, sosyal ve yönetişim (ÇSY) alanlarında ön plana çıkan yatırımlara kaynak sağlamaktır. Finansal mekanizmaların sürdürülebilir kalkınmaya neden ve nasıl katkı sağlaması gerektiğini tartışmak önemlidir. Son dönemde yaşanılan Covid 19 pandemisinin birçok alanda olduğu gibi sürdürülebilir finans alanındaki olumsuz etkileri de çalışma kapsamında değerlendirilmiştir.

Keywords

• İklim Değişikliği
• Sürdürülebilir Kalkınma
• Sürdürülebilir Finans Covid-19

References

1. Afionis, S., & Stringer, L. C. (2012). European Union leadership in biofuels regulation: Europe as a normative power?. Journal of Cleaner Production, 32, 114-123.
2. Akbaş, H. E., & Canikli, S. (2019). Determinants of voluntary greenhouse gas emission disclosure: An empirical investigation on Turkish firms. Sustainability, 11(1), 107.
3. Arrhenius, S. (1896). XXXI. On the influence of carbonic acid in the air upon the temperature of the ground. The London, Edinburgh, and Dublin Philosophical Magazine and Journal of Science, 41(251), 237-276.
4. Aydın, U. (2019). Green Finance and Renewable Energy Sector Relationship in Turkey: SWOT Analysis. Yeni Nesil Girişimcilik ve Ekonomi, Ekin Yayınevi, Bursa, 147.
5. Banga, J. (2019). The green bond market: a potential source of climate finance for developing countries. Journal of Sustainable Finance & Investment, 9(1), 17-32.
6. Barkemeyer, R., Holt, D., Preuss, L. and Tsang, (2014). What happened to the development in ‘sustainable development’? Sustainable Development, 22(1): 15-32
7. Baysan, Y. (2019). “Yeşil tahviller ve iklim finansmanı”. Marmara Üniversitesi Bankacılık Ve Sigortacılık Enstitüsü Yayınlanmış Yüksek Lisans Tezi.
8. Clark, R., Reed, J., & Sunderland, T. (2018). Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance. Land Use Policy, 71, 335-346.

9. Climate Bond Inıtıative, Data Base, 2021.
10. Climate Bond Initiative (2019), Global Green Bond Report
11. CPP Investments (2020), Green Bond Impact Report 2020, Toronto
12. Duru, U., & Nyong, A. (2016). Why Africa needs green bonds. Africa Economic Brief, 7(2), 8.
13. EU, Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088, Official Journal of the European Union, L198, Vol.63, 2020.
14. Feng, S. (2021). Analysis on the Effect of Green Finance on Sustainable Development, International Journal of Science Vol.8 No.9.
15. Food Security Information Network, (2020), Global Report on Food Crisis: Joint Analysis for Better Decisions, World Food Programme, Rome.
16. Freyman M. (2020), Covid-19 elevates the value of responsible investing, https://www.mercer.com/our-thinking/wealth/covid-19-elevates-the-value-of-responsible-investing.html
17. Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210-233.
18. G20. (2016). G20 Leaders’ Communique Hangzhou Summit. http://www.consilium.europa.eu/media/23621/leaders_communiquehangzhousummit-final.pdf.
19. Gaspar, V., Amaglobeli, M. D., Garcia-Escribano, M. M., Prady, D., & Soto, M. (2019). Fiscal policy and development: Human, social, and physical investments for the SDGs. International Monetary Fund.
20. Giese, G., Lee, L. E., Melas, D., Nagy, Z., & Nishikawa, L. (2019). Foundations of ESG investing: How ESG affects equity valuation, risk, and performance. The Journal of Portfolio Management, 45(5), 69-83.
21. Gusheva, E., & de Gooyert, V. (2021). Can We Have Our Cake and Eat It? A Review of the Debate on Green Recovery from the COVID-19 Crisis. Sustainability, 13(2), 874.
22. Hussain,Farah Imrana; Tlaiye,Laura E.; Jordan Arce,Rolando Marcelo.2020. Developing a National Green Taxonomy : A World Bank Guide (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/953011593410423487/Developing-a-National-Green-Taxonomy-A-World-Bank-Guide
23. ICMA (2018) Green Bond Principles Voluntary Process Guidelines for Issuing Green Bonds June 2018
24. ICMA (b) (2018) Social Bond Principles Voluntary Process Guidelines for Issuing Social Bonds June 2018
25. IEA (2020), Global Energy Review 2020, IEA, Paris https://www.iea.org/reports/global-energy-review-2020
26. International Monetary Fund (IMF). 2019. Global Financial Stability Report: Lower for Longer. Washington, DC, October.
27. IPCC (2013) Summary for policymakers. In: Stocker TF, Qin D, Plattner GK, Tignor M, Allen SK, Boschung J, Nauels A, Xia Y, Bex V, Midgley PM (eds) Climate change 2013: the physical science basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge, pp 3–29
28. Jun, M., Kaminker, C., Kidney, S., & Pfaff, N. (2016). Green bonds: Country experiences, barriers and options. Input Paper In support of the G20 Green Finance Study Group.
29. Kaminker, C. (2015). Green Bonds. Mobilising the Debt Capital Markets for a Low-Carbon Transition. OECD Policy Perspectives.
30. Kandır, S. Y., & Yakar, S. (2017). Yeşil Tahvil Piyasalari: Türkiye’de Yeşil Tahvil Piyasasinin Geliştirilebilmesi İçin Öneriler. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 26(2), 159-175.
31. Khan, M. A., Riaz, H., Ahmed, M., & Saeed, A. (2021). Does green finance really deliver what is expected? An empirical perspective. Borsa Istanbul Review.
32. King, M. (2017). The End of Alchemy: Money, Banking, and the Future of the Global Economy. 2nd ed. New York: W. W. Norton & Company.
33. Krushelnytska,O.(2017). Introduction to green finance (English). Global Environment Facility (GEF) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/405891487108066678/Introduction-to-green-finance
34. Kuloğlu, E., & Öncel, M. (2015). Yeşil Finans Uygulaması ve Türkiye’de Uygulanabilirliği. Gazi Üniversitesi Sosyal Bilimler Dergisi, 2(2).
35. Kuşat, N. (2013). Yeşil Sürdürülebilirlik İçin Yeşil Ekonomi: Avantaj Ve Dezavantajlari–Türkiye İncelemesi. Journal of Yaşar University, 8(29), 4896-4916.
36. Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. the Journal of Finance, 72(4), 1785-1824.
37. Liu, N., Liu, C., Xia, Y., Ren, Y., & Liang, J. (2020). Examining the coordination between green finance and green economy aiming for sustainable development: a case study of China. Sustainability, 12(9), 3717.
38. OECD (2020), Global Outlook on Financing for Sustainable Development 2021: A New Way to Invest for People and Planet, OECD Publishing, Paris, https://doi.org/10.1787/e3c30a9a-en.
39. OECD. (2017). Mobilising Bond Markets for a Low-Carbon Transition, Green Finance and Investment. Paris: OECD Publishing. http://doi.org/10.1787/9789264272323-en.
40. Özgenç, N. (2015). Sürdürülebilirlik Temelinde Yoksulluk Kavramının Yeniden Yorumlanması: Yoksulluk Düğümü. Sosyal Politika Çalışmaları Dergisi, (35), 101-136.
41. Park, S. K. (2018). Social Bonds for Sustainable Development: A Human Rights Perspective on Impact Investing. Business and Human Rights Journal, 3(2), 233-255.
42. Peeters, S., Schmitt, M., & Volk, A. (2020). Social Bonds Can Help Mitigate the Economic and Social Effects of the COVID-19 Crisis. IFC Publications
43. Pham, L. (2016). Is it risky to go green? A volatility analysis of the green bond market. Journal of Sustainable Finance & Investment, 6(4), 263-291.
44. Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. 2020. The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press.
45. Safronov, V.M. (2016).Climate change and mammals of Yakutia. Biol Bull Russ Acad Sci 43, 1256–1270 https://doi.org/10.1134/S1062359016110121
46. Schoenmaker, D. (2017). Investing for the common good: A sustainable finance framework. Brussels: Bruegel, 80.
47. Sermaye Piyasası Kurulu, (2021). Yeşil Borçlanma Aracı ve Yeşil Kira Sertifikası Rehberi Taslak Metini, https://www.spk.gov.tr/Sayfa/Dosya/1350
48. Sherwood, M. W., & Pollard, J. L. (2018). The risk-adjusted return potential of integrating ESG strategies into emerging market equities. Journal of Sustainable Finance & Investment, 8(1), 26-44.
49. SSE (2017). “How Stock Exchanges Can Grow Green Fınance A Voluntary Actıon Plan”. Sustainable Stock Exchanges Initiative.
50. The Global Fund , 2020. The Global Fund to Fight AIDS, Tuberculosis and Malaria, https://www.theglobalfund.org/media/9819/covid19_mitigatingimpact_report_en.pdf
51. Turguttopbaş, N. (2020). Sürdürülebilirlik, Yeşil Finans Ve İlk Türk Yeşil Tahvil İhracı. Finansal Araştırmalar ve Çalışmalar Dergisi, 12(22), 267-283.
52. Türkiye Cumhuriyeti Ticaret Bakanlığı. (2021). Yeşil Mutabakat Eylem Planı 2021, Ankara, https://ticaret.gov.tr/data/60f1200013b876eb28421b23/MUTABAKAT%20YEŞİL.pdf
53. Türkmen, S. Y., & Çağıl, G. (2017). Sustainable and Inclusive Finance in Turkey. In Risk Management, Strategic Thinking and Leadership in the Financial Services Industry (pp. 11-23). Springer, Cham.
54. UBS, Wealth Management (2020). “UBS Investor’s Watch” https://www.ubs.com/global/en/wealth-management/our-approach/investor-watch/2020/setting-a-new-course.html
55. UNESCO, (2021), COVID-19 Impact on Education, Unesco Database
56. United Nations (UN), (2015). Transforming our World: The 2030 Agenda for Sustainable Development, A/RES/70/1, https://sdgs.un.org/sites/default/files/publications/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf
57. WCED (ed). 1987. Our Common Future: The World Commission on Environment and Development. Oxford: Oxford University Press:. Oxford.
58. World Bank. 2015a. “Green Bond Impact Report.” Technical Report. Washington, DC: World Bank Treasury Department. Accessed 1 July 2016. http://treasury.worldbank.org/cmd/pdf/ WorldBankGreenBondImpactReport.pdf
59. World Bank. 2020. “Climate Finance Joint Report on Multilateral Development Banks, 2019”
60. Zhang, B., & Wang, Y. (2021). The effect of green finance on energy sustainable development: a case study in China. Emerging Markets Finance and Trade, 57(12), 3435-3454.
61. Zhao, C., Guo, Y., Yuan, J., Wu, M., Li, D., Zhou, Y., & Kang, J. (2018). ESG and corporate financial performance: Empirical evidence from China’s listed power generation companies. Sustainability, 10(8), 2607.