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31 December 2021
Sustainable and Green Financial and Economic Systems in a Post Pandemic World
Sustainable finance refers to incorporating environmental, social, and governance (ESG) aspects while making investing and financing decisions. The environmental factors include climate preservation by promoting renewable energy sources, supporting biodiversity, mitigating pollutants, and stimulating a circular economy. Social endeavors refer to human capital efficiency, employee inclusiveness, protection of rights, etc. Finally, governance is essential to ensure that proper management structures are in place to guarantee compliance with environmental and social considerations. The ultimate goal of sustainable finance is to benefit the consumers, businesses, and society's economic and financial performance while creating a positive environmental and social impact. The transition to sustainable practices contributes towards business success. Here, financial institutions have a critical role by channeling funds towards environment-friendly technologies and businesses to support economic development for sustainable circular economies.
Over the years, sustainable finance has evolved significantly to the extent that it is now considered a regulatory imperative. Many financial institutions have already opted for carbon neutrality by restricting the financing of shale gas, oil, tobacco, and other projects that can lead to climate degradation. While the concept of sustainable finance is gaining attention across the globe, some caveats could limit this transition. The most important one is the need for modifying business models to attain sustainable development. The quantification and management of ecological and social risk factors also pose significant challenges. Finally, the mobilization of sustainable savings is among the vital constraints for funding green development. The outbreak of Covid-19 has further aggravated these caveats. There was a substantial decline in corporate firms' liquidity and solvency profiles due to Covid-19 and limiting their ability to fund sustainability. Consequently, there is immense pressure on budgeted public and private investments towards environmentally friendly ventures. Given a drag on the renewables' prices, a transition to alternative energy sources has become less attractive from a business perspective. This is also a significant bottleneck for the implementation of the Paris agreement and the European green deal.
Fortunately, with the global vaccination plans in place, the eradication of the pandemic is in sight (if not immediate). Therefore, it is essential to formulate innovative policies that can help limit the damage done to sustainability efforts. These may include promoting environmentally friendly production and consumption, fiscal restructuring to tax carbon emissions aggressively, reforming financial policies to promote green financing, providing capital comfort for the institutions that finance sustainability, adjustment to Solvency II, supplementary tax credits for green bonds, developing a conducive ESG rating criteria, incentivizing green savings, etc.
The submissions should be full-length papers that are not published before or submitted elsewhere and substantially contribute to the literature.
Topics (indicative but not comprehensive)
- Transition to sustainable business models
- Role of sustainable production in a circular economy
- The potential of the Green Bond Market
- Impact of Carbon emissions on investment yields
- The role of financing in climate prevention
- Climate change and global economic rules
- Credit risk management of green financing
- Financing sustainable production and consumption
- Emerging markets and relevance of sustainability
- The renewables and financial performance
- Impact of environmental regulations on market liquidity
- ESG factors in a post-Covid world
- Fiscal policies to foster sustainable transitions
- Financial Ecosystem for green savings
- Accounting for a sustainable financial system and environmental assets
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At submission, please enter the special issue title ‘Sustainable and Green Financial and Economic Systems in a Post Pandemic World’ into the text box.
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