GREEN FINANCE INSTRUMENTS AND THE SUSTAINABLE DEVELOPMENT GOALS ACHIEVEMENT IN DEVELOPING COUNTRIES: A SYSTEMATIC LITERATURE REVIEW
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Abstract
Green financing has emerged as a fundamental segment worldwide, playing a relevant role in pursuing the Sustainable Development Goals (SDGs). As the world faces complex environmental, economic, and social challenges, green finance stands out as a tool to drive the transition towards a more sustainable economy. The present work aimed to systematically review studies on green finance to explore scientific production in this area to identify the existing green finance instruments that can be used in developing countries, and their contributions to the SDGs achievement. We analyzed 37 studies and through a bibliometric analysis, we identified the most significant networks and areas studied by authors. Content analysis contributed to identifying 46 green financing instruments in this context, distributed in 7 categories: Government Financing, Funds, Private/non-state investment, Public-Private Partnership, Financial Institutions, Capital Markets, and Direct Foreign Investment. This review showed that 12 of the 17 SDGs can be funded through green finance instruments, however, it was found that most studies are focused on climate change goals, resulting in a significant gap in how to promote these instruments to target other SDGs more effectively in developing countries. The insights obtained can contribute to government strategies, and with the development of more effective public policies facing environmental challenges and advancing towards the SDGs.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
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