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Insights from EU Policy Framework in Aligning Sustainable Finance for Sustainable Development in Africa and Asia

Author

Listed:
  • Shantha Indrajith H. Liyanage

    (Faculty of Business and Accounting, Botho University, Botswana)

  • Fulu Godfrey Netswera

    (Faculty of Management Studies, Durban University of Technology, South Africa,)

  • Abel Motsumi

    (Faculty of Business and Accounting, Botho University, Botswana.)

Abstract

It is conspicuous that the mainstream financial system in the EU is transforming into a sustainable financial system by a supra/national policy and institutional framework for meeting the goals of SDGs and the targets of the Paris Agreement for climate change together with Nationally Determined Contribution. However, Botswana or Sri Lanka has no such framework. Hence, a need of the hour has arisen to evaluate the sustainable finance policies in Botswana, Sri Lanka, together with the EU seeking insights from the EU s policy framework. Since sustainable finance is not a well-grown branch of the conventional mainstream financial system, the nature of the knowledge is produced by social constructivism based on the grounded theory and the theory is inductively developed for achieving the purpose of the research. The study found, among other things, that incorporating existing policies into the multiple ministries and affiliated institutions together with the current industry-led policy initiatives to manage ESG risks are not adequate. Hence it is recommended various insights to be taken into consideration by the policymakers to formulate a national framework for mobilizing public and private capital to meet the goals of sustainability.

Suggested Citation

  • Shantha Indrajith H. Liyanage & Fulu Godfrey Netswera & Abel Motsumi, 2021. "Insights from EU Policy Framework in Aligning Sustainable Finance for Sustainable Development in Africa and Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 459-470.
    • Handle: RePEc:eco:journ2:2021-01-54
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    Cited by:

    1. Georgios Zairis & Panagiotis Liargovas & Nikolaos Apostolopoulos, 2024. "Sustainable Finance and ESG Importance: A Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 16(7), pages 1-14, March.
    2. Sergei G. Vagin & Elena I. Kostyukova & Natalia E. Spiridonova & Tatiana M. Vorozheykina, 2022. "Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development," Risks, MDPI, vol. 10(2), pages 1-13, February.

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    More about this item

    Keywords

    Sustainable Finance; Policy framework; Paris Climate Agreement; Sustainable Development Goals; Environmental; Social & Governance;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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