Special issue: Financial Innovation for a Sustainable Future

Background:

The financial sector is increasingly recognized as a critical player in addressing global challenges related to climate change and sustainable development (Edmans & Kacperczyk, 2022). The nexus between finance and sustainability encompasses a wide range of themes, including international financial cooperation, climate finance mechanisms, and their implications for economic growth. This special issue aims to delve deeply into these areas, providing a platform for high-quality research that explores the intersection of finance, sustainability, and growth.

Finance plays a pivotal role in mobilizing the resources necessary to achieve sustainable development goals (SDGs) (Porter, & Kramer, 2011). Financial institutions, through mechanisms like green bonds, carbon markets, and climate finance, are essential in channeling funds towards projects that mitigate climate change, promote renewable energy, and support sustainable infrastructure (Yang et al., 2023).

Climate finance refers to local, national, or transnational financing—drawn from public, private, and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change (Bolton & Kacperczyk, 2021). Mechanisms such as green bonds have emerged as powerful tools in mobilizing private sector investment in climate-related projects.

The relationship between sustainable finance policies and economic growth is complex and multifaceted. Policies that promote green finance can lead to significant economic benefits, including job creation in renewable energy sectors, improved public health through reduced pollution, and enhanced energy security. However, the transition to a sustainable economy also presents challenges, such as the need for substantial upfront investments and the potential for short-term economic disruptions (Galeone, Ranaldo & Fusco, 2024; Starks, 2023).

Technological innovations are transforming the financial sector and creating new opportunities for sustainable finance. Fintech solutions, such as digital platforms for green investments and blockchain-based carbon trading systems, are enhancing transparency, reducing transaction costs, and increasing the efficiency of sustainable finance markets (Dionisio et al., 2023).

The aim of this special issue is to explore the transformative role of financial innovation in fostering a sustainable future. By focusing on the intersection of finance, sustainability, and economic growth, this issue seeks to provide a comprehensive examination of how innovative financial instruments, regulatory frameworks, and international collaborations can drive sustainable development. We aim to gather contributions that highlight cutting-edge research and practical insights into how the financial sector can address global challenges such as climate change, resource scarcity, and social inequality. Through this exploration, we aspire to inform and inspire policies, strategies, and practices that leverage financial innovation to achieve sustainable development goals and create resilient economies.

Objectives:

1. Explore International Financial Mechanisms:

• Investigate the role of international financial institutions and agreements in promoting sustainable development.
• Analyze the effectiveness of cross-border financial initiatives in supporting climate goals and economic growth.

2. Examine Climate Finance Strategies:

• Assess the impact of climate finance on mitigating climate change and fostering sustainable development.
• Evaluate the role of green bonds, carbon markets, and other innovative financial instruments in mobilizing resources for climate action.

3. Understand the Intersection of Finance and Sustainable Growth:

• Investigate the relationship between sustainable finance practices and economic growth at both national and global levels.
• Explore the role of financial policies and regulations in promoting sustainability and resilience in financial systems.

Topics: 

The special issue is particular interested in, but not limited to, the following topics:

• Role of Multilateral Development Banks (MDBs): Explore how MDBs like the World Bank and the Asian Development Bank are financing sustainable projects and the impact of these investments on regional development
• Cross-border Investments: Analyze how foreign direct investment (FDI) and portfolio investments contribute to sustainable development and the conditions necessary for their success
• International Financial Regulations: Examine the influence of international financial standards and agreements, such as the Basel III Accord, on promoting sustainability
• Green Bonds: Study the growth and impact of green bonds in financing sustainable projects and their contribution to reducing carbon emissions
• Carbon Trading Markets: Assess the effectiveness of carbon markets in reducing greenhouse gas emissions and their economic implications
• Public and Private Sector Roles: Evaluate the collaborative efforts of the public and private sectors in mobilizing climate finance and the resulting outcomes
• Sustainable Finance Policies: Investigate how national and international policies promoting green finance influence economic growth and stability
• Financial Inclusion: Explore the role of financial inclusion in achieving sustainable development goals and promoting inclusive growth
• Regulatory Frameworks: Analyze the effectiveness of regulatory frameworks in fostering sustainable investment and mitigating financial risks associated with climate change
• National Strategies: Conduct comparative analyses of national strategies for sustainable finance, highlighting successful policies and initiatives
• International Collaborations: Examine case studies of international collaborations in climate finance, identifying key success factors and challenges
• Technological Innovations: Assess the impact of technological advancements, such as fintech and blockchain, on sustainable finance practices

Important deadlines

• Submissions to the Special Issue due by 30^th June 2025
• Publication of the Special Issue in 30^th June 2026

Submission Process

Authors are invited to submit original research articles, review papers, and case studies that align with the themes outlined above. Submissions should offer significant contributions to the field of sustainable and climate finance and provide insights that can inform policy and practice.
Paper submissions will undergo rigorous editorial screening and double-blind peer review by a minimum of two recognized scholars. The standard requirements of Financial Innovation for submissions apply. Please consult the journal submission guidelines available at https://jfin-swufe.springeropen.com/submission-guidelines.

Guest Editors

Professor (Associate) Anna Min Du
Edinburgh Napier University, Edinburgh, UK
Email: a.du@napier.ac.uk 
https://scholar.google.com/citations?user=wfDKamwAAAAJ&hl=en
ORCID: https://orcid.org/0000-0002-1715-8774
Area Editor: Research in International Business and Finance (SSCI Q1, ABDC B, ABS2, IF:6.5)
Youth Editorial Board Member: Financial Innovation
Guest Editor: Energy Economics (SSCI Q1, ABDC A*, ABS3, IF:12.8), Resources Policy (SSCI Q1, ABDC B, ABS2, IF:10.2), Research in International Business and Finance

Professor Brian M. Lucey
The University of Dublin Trinity College, Dublin, Ireland
Email: blucey@tcd.ie
https://scholar.google.com/citations?hl=en&user=WGptVJMAAAAJ
ORCID: https://orcid.org/0000-0002-4052-8235
Editor-in-Chief: International Review of Economics & Finance (SSCI Q1, ABDC A, ABS2, IF:4.5); Journal of Economic Surveys (SSCI Q1, ABDC A, ABS2, IF:5.3)
Development Editor: International Review of Financial Analysis (SSCI Q1, ABDC A, ABS 3, IF:8.2)

Professor Samuel A. Vigne
LUISS Business School, Viale Romania 32, 162, Roma, Italy
Email: samuel.vigne@luissbusinessschool.it
https://scholar.google.com/citations?hl=en&user=S5cB_dAAAAAJ
ORCID: https://orcid.org/0000-0003-1831-617X
Editor-in-Chief: International Review of Financial Analysis (SSCI Q1, ABDC A, ABS 3, IF:8.2); Finance Research Letters (SSCI Q1, ABDC A, ABS 2, IF:10.4)

References

Bolton, P. & Kacperczyk, M. (2021). Do investors care about carbon risk? Journal of financial economics, 142(2), pp.517-549. https://doi.org/10.1016/j.jfineco.2021.05.008  
Dionisio, M., de Souza Junior, S.J., Paula, F. & Pellanda, P.C. (2023). The role of digital social innovations to address SDGs: A systematic review. Environment, Development and Sustainability, https://doi.org/10.1007/s10668-023-03038-x
Edmans, A., & Kacperczyk, M. (2022). Sustainable Finance. Review of Finance, 26(6), 1309-1313. https://doi.org/10.1093/rof/rfac069  
Galeone, G., Ranaldo, S. & Fusco, A. (2024). EGS and Fintech, Are they connected, Research in International Business and Finance, 69, 102225. https://doi.org/10.1016/j.ribaf.2024.102225    
Porter, P. & Kramer, M. (2011), Creating Shared Value: How to reinvent capitalism and unleash a wave of innovation and growth, Harvard Business Review.
Starks, L.T. (2023). Presidential Address: Sustainable Finance and ESG Issues – Value versus Values. Journal of Finance, 74(8), 1837-1872. https://doi.org/10.1111/jofi.13255  
Yang, T., Sun, Z., Du, M., Du, Q. Li, L. & Shuwaikh, F. (2023). The impact of the degree of coupling coordination between green finance and environmental regulations on firms’ innovation performance: Evidence from China, Annals of Operations Research, https://doi.org/10.1007/s10479-023-05704-9