Green Bonds for International Relations and Sustainable Development Goals: A Comparative Analysis Based on Different Countries

Abstract

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.