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Economic Inclusion: Green Finance and the SDGs

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  • Arno J. van Niekerk

    (Department of Economics and Finance, Faculty of Economics and Management Sciences, University of the Free State, Bloemfontein 9300, South Africa)

Abstract

Persistent economic exclusion and the high levels of natural resource depletion are alarming. The Sustainable Development Goals (SDGs) are among a few global initiatives aimed at bringing a turnaround in both of these areas of concern. Giving action to productive economic inclusion and transitioning towards a circular, regenerative economy is challenging for countries, particularly because of a lack of economic incentives. Green finance has emerged in the last few decades as a valuable mechanism that has the potential to meet this challenge. In answering the question of how to facilitate the necessary transition to a green, inclusive economy, the paper attempts to bring green finance and economic inclusion together as a possible means (like a bridge) to address economic exclusion and resource degeneration. That is the primary aim of the study, and it is investigated through an analysis of theoretical literature. The key findings include: a strong synergy exists between green finance and economic inclusion; different forms of green finance are able to facilitate economic inclusion; and green finance can be instrumental in attracting investors to fast-track SDG attainment. A key conclusion is that green finance can play a vital role in activating and prolonging broad-based benefit sharing in an eco-conscious way.

Suggested Citation

  • Arno J. van Niekerk, 2024. "Economic Inclusion: Green Finance and the SDGs," Sustainability, MDPI, vol. 16(3), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1128-:d:1328701
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    References listed on IDEAS

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