Role of climate financing in advancing the SDGS: Addressing global challenges through green bonds and carbon markets

Ali Hamisu

doi:10.65453/ijar.v9i2.1248

Authors

Ali Hamisu Department of Economics, Faculty of Social Sciences, Adamawa State University, Mubi, Nigeria.

DOI:

https://doi.org/10.65453/ijar.v9i2.1248

Keywords:

Carbon, Climate, Financing, Green Bonds, Market, SGDs, CO2

Abstract

Green bonds play a pivotal role in promoting sustainable development goals by channelling financial resources toward environmentally friendly projects, fostering a greener and more resilient future. This study examined the role of climate financing in advancing the SDGs, addressing global challenges through green bonds and carbon markets. Using quarterly data from 2007-Q1 to 2023-Q4, with green bonds introduced in 2007, the study employed the autoregressive distributed lag model (ARDL) developed by Pesaran et al. (2001). The findings demonstrate that climate financing, green bonds, carbon markets, and global challenges, as proxy by global CO2 emissions (GtCO2), hinder the progress of sustainable development goals. Based on the conclusion, the following recommendations were made: to advance SDGs, policies should focus on strengthening local financing mechanisms like green bonds, improving carbon market efficiency to align with sustainable policies, and creating a supportive environment for green bonds to attract private investment in sustainable projects.

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