Hanghang Zhang, Zijun Yuan


Green Bonds, in the past decade, has been a prominent tool for financing activities that could help the nations achieve the SDGs. Additionally, in this context, the role of international aid tends to be an important moderating factor. The primary purpose of the study was to investigate the role of green bonds in achieving SDGs and if there is a potential role of international aid as a moderating variable. The panel dataset consisted of 11 top countries of the world based on green bond issuance, and subsequently, the timeline for the study was eight fiscal years. The results implied that the issuance of Green Bonds is effective in reducing carbon emissions, thereby having a favourable effect on the achievement of the relevant SDG. Additionally, the realisation of the goals tends to be marginally better when the relationship is moderated by international aid. The findings are relevant to the Comparative Advantage Theory, and subsequently, in the practical scenario, it implies that the policymakers should take necessary steps to increase the acceptance of green bonds to help the nations to achieve the SDGs.

Keyword : Green Bonds, Sustainable Development Goals, International Aid.

Published in Issue
Apr 27, 2024
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Ahmed, R., Yusuf, F., & Ishaque, M. (2023). Green bonds as a bridge to the UN sustainable development goals on environment: A climate change empirical investigation. International Journal of Finance & Economics. Alamgir, M., & Cheng, M. C. (2023). Do Green Bonds Play a Role in Achieving Sustainability? Sustainability, 15(13), 10177. Arora, R. U., & Sarker, T. (2023). Financing for sustainable development goals (SDGs) in the era of COVID-19 and beyond. The European Journal of Development Research, 35(1), 1-19. Bachelet, M. J., Becchetti, L., & Manfredonia, S. (2019). The green bonds premium puzzle: The role of issuer characteristics and third-party verification. Sustainability, 11(4), 1098. Belloc, M. (2006). Institutions and international trade: A reconsideration of comparative advantage. Journal of Economic Surveys, 20(1), 3-26. Bhutta, U. S., Tariq, A., Farrukh, M., Raza, A., & Iqbal, M. K. (2022). Green bonds for sustainable development: Review of literature on development and impact of green bonds. Technological Forecasting and Social Change, 175, 121378. Chang, L., Taghizadeh-Hesary, F., Chen, H., & Mohsin, M. (2022). Do green bonds have environmental benefits? Energy Economics, 115, 106356. Dhahri, S., & Omri, A. (2020). Foreign capital towards SDGs 1 & 2—Ending Poverty and hunger: The role of agricultural production. Structural Change and Economic Dynamics, 53, 208-221. Flammer, C. (2020). Green bonds: effectiveness and implications for public policy. Environmental and Energy Policy and the Economy, 1(1), 95-128. Flammer, C. (2021). Corporate green bonds. Journal of financial economics, 142(2), 499-516. Gabr, D. H., & Elbannan, M. A. (2023). Green finance insights: evolution of the green bonds market. Management & Sustainability: An Arab Review. Kharas, H., Prizzon, A., & Rogerson, A. (2014). Financing the post-2015 sustainable development goals. Overseas Development Institute, London. Krzymowski, A. (2022). Role and significance of the United Arab Emirates foreign aid for its soft power strategy and Sustainable Development Goals. Social Sciences, 11(2), 48. Li, D. D., Rishi, M., & Bae, J. H. (2021). Green official development Aid and carbon emissions: do institutions matter?. Environment and Development Economics, 26(1), 88-107. Lopes, J., Somanje, A. N., Velez, E., Lam, R. D., & Saito, O. (2020). Determinants of foreign investment and international aid for meeting the sustainable development goals in Africa: a visual cognitive review of the literature. Sustainability Challenges in Sub-Saharan Africa I: Continental Perspectives and Insights from Western and Central Africa, 161-187. Maltais, A., & Nykvist, B. (2020). Understanding the role of green bonds in advancing sustainability. Journal of Sustainable Finance & Investment, 1-20. Mawdsley, E. (2018). From billions to trillions’ Financing the SDGs in a world ‘beyond aid. Dialogues in Human Geography, 8(2), 191-195. Nguyen, N. M., Luu, N. H., Hoang, A., & Nguyen, M. T. N. (2023). Environmental impacts of green bonds in cross-countries analysis: a moderating effect of institutional quality. Journal of Financial Economic Policy. Oguntuase, O. J., & Windapo, A. (2021). Green bonds and green buildings: New options for achieving sustainable development in Nigeria. Housing and SDGs in Urban Africa, 193-218. Runde, D. F., Metzger, C., & Abdullah, H. F. (2020). Covid-19 demands innovative ideas for financing the SDGs. Center for Strategic and International Studies (CSIS). Schmidt-Traub, G., & Sachs, J. D. (2015). Financing sustainable development: implementing the SDGs through effective investment. Sustainable Development Solution Network. Retrieved from: https://irp-cdn. multiscreensite. com/be6d1d56/files/uploaded/150619-SDSN-Financing-Sustainable-Development-Paper-FINAL-02. pdf. Schumacher, K. (2020). Green bonds: the shape of green fixed-income investing to come. Journal of Environmental Investing, 10(1). Schumacher, R. (2013). Deconstructing the theory of comparative advantage. World Social and Economic Review, 2013(2, 2013), 83. Shetty, S. (2020). Accelerating progress of low-income countries towards the SDGs: Balancing realism and ambition in a post-COVID-19 world. Center for Global Development, Washington (DC), 1-21. Sinha, A., Mishra, S., Sharif, A., & Yarovaya, L. (2021). Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling. Journal of Environmental Management, 292, 112751. Sisodia, G., Joseph, A., & Dominic, J. (2022). Whether corporate green bonds act as armour during crises? Evidence from a natural experiment. International Journal of Managerial Finance, 18(4), 701-724. Statista. (2023). Leading countries in terms of green bonds issued in 2022. Retrieved from:,of%20green%20bonds%20in%202022. Sustainable Development Report. (2023). Rankings: The overall performance of all 193 UN Member States. Retrieved from: Tolliver, C., Keeley, A. R., & Managi, S. (2019). Green bonds for the Paris agreement and sustainable development goals. Environmental Research Letters, 14(6), 064009. Yeow, K. E., & Ng, S. H. (2021). The impact of green bonds on corporate environmental and financial performance. Managerial Finance, 47(10), 1486-1510. Zhang, Z., Zhu, H., Zhou, Z., & Zou, K. (2022). How does innovation matter for sustainable performance? Evidence from small and medium-sized enterprises. Journal of Business Research, 153, 251-265.