A review of innovative bond instruments for sustainable development in Asia

Purpose Advancing the economies in Asia toward meeting sustainable development goals (SDGs) needs an unprecedented investment in people, processes and the planet. The participation of the private sector is necessary to bridge the financing gap to attain this objective. Engaging the private sector can contribute significantly to attaining the 2030 agenda for SD. However, the financial markets in Asian economies are yet to realize this potential. In this context, this paper aims to discuss the state of finance for SD in Asia and identifies innovative financial instruments for attracting private investments for SDs in these economies. Design/methodology/approach This study relies on published articles, reports and policy documents on financing mechanisms for SD. The literature review covered journal data sources, reports from global institutions such as the UN, World Bank, International Monetary Fund and think-tanks operating in the field of climate change policies. Though the topic was specific to financial market instruments, a broader search was conducted to understand the different sources of sustainable finance available, particularly in Asia. Findings The investments that are required for meeting the SDGs remain underfunded. Though interest in sustainability is growing in the Asian economies, the financial markets are yet to transition to tap the growing interest in sustainable investing among global investors. This paper concludes that to raise capital from private investors the Asian economies should ensure information availability, reduce distortions and unblock regulatory obstacles. It would also need designing policies and introducing blended financing instruments combining private and public funds. Research limitations/implications Though the study has grouped Asian economies, the financing strategy for SDGs should be developed at the country-level considering the domestic financial markets, local developmental stage, fiscal capacity and nationally determined contributions. Further research can focus on developing country-specific strategies for using innovative financial instruments. Originality/value Mobilizing funds for implementing the 2030 Agenda for SD is a major challenge for Asian economies. The paper is addressed to national policymakers in Asian economies for developing strategies to raise capital for SD through private participation. It provides opportunities for revisiting national approaches to sustainable finance in these economies

Emissions-foreign trade nexus: establishing the need to harmonize environment and economics in RCEP

Purpose This article investigates the impact of foreign trade on carbon emissions of the member countries of the largest trade bloc, the Regional Comprehensive Economic Partnership (RCEP). Design/methodology/approach The aggregate bilateral trade with members of RCEP during the period 1991–2020 was considered for analysis. The study also examines the impact of foreign trade (between member countries) on economic development, represented by GDP per capita. Dumitrescu–Hurlin panel Granger causality test was conducted to understand the impact of foreign trade on GDP per capita and carbon emissions. Findings Results indicate that though foreign trade is heterogeneously Granger causing GDP per capita, it also aggravates carbon emissions in RCEP bloc. Originality/value The study is of significance to the policymakers in the member countries as it provides evidence to include climate impact in trade agreements. The wealthier RCEP member countries can support the green transition of low-income countries through transfer of eco-friendly technologies

Investigating the foreign trade-emission nexus in RCEP

Foreign trade is usually considered a culprit for rising emissions. In this article, the authors attempt to understand whether the creation of the regional comprehensive economic partnership (RCEP) will lead to more emissions from the region. To meet this objective, the study analyses the relationship between foreign trade and carbon emissions of the 15 RCEP constituents, using macroeconomic data for the period 1991-2016. The long-term causal relationship between foreign trade and emissions was tested using the ARDL bounds test. The results indicate a long-run causal relationship between the two variables. A fully modified OLS regression model confirms that the three variables considered – foreign trade, economic growth, and energy consumption – have a significant, positive impact on emissions on RCEP member countries. The analysis of individual countries also confirms the cointegration between foreign trade and carbon emissions. ECMs further show the correction happens from foreign trade to carbon emissions

Relationship between fixed capital formation and carbon emissions: Impact of trade liberalization in India

The liberalization of economies is aimed at boosting domestic growth through foreign investment and trade. The proponents of liberalization argue that opening up markets in developing economies provides access to capital to enhance production. However, proponents of the pollution haven hypothesis (PHH) argue that liberalization and trade agreements have led to the export of carbon-intensive production from wealthier countries to developing economies. The difference between the two outcomes lies in the nature of fixed assets built by developing countries. In this study, we examine the role of fixed capital formation on carbon emissions during two distinct periods of India’s economic development. India liberalized its economy with trade reforms in 1991, thereby providing two distinct time periods of closed and open trade policies. The economic data during 1971–2021 is divided into two parts—before (1971–1990) and after (1991–2021) liberalization. Gross fixed capital formation (GFCF) is used as a measure of capital formation while carbon emissions are used to represent environmental impact. Auto-regressive distributed lag (ARDL) model is used for analysis. Results indicate that GFCF had no significant relationship with carbon emission before liberalization, whereas, there was a significant, positive impact post-liberalization. The study is of significance to policymakers in developing countries as it suggests a change in the capital formation towards low carbon-intensive products and services. It also strengthens the argument for investing capital in cleaner energy and technologies

Green Bonds Driving Sustainable Transition in Asian Economies: The Case of India

On September 25, 2015, 193 countries of the United Nations (UN) General Assembly, signed the 2030 Agenda to work towards attaining 17 Sustainable Development Goals (SDGs) and its associated 169 targets and 232 indicators. With one of the largest renewable energy programs, India is well-poised to be a role model for low-carbon transformation to other Asian countries. However, bridging the financing gap is critical to ensure that the country meets its SDG targets. Though the SDGs identified by the UN are broad-based and interdependent, for ease of analysis we have grouped them into five themes-people, planet, prosperity, peace, and partnership-based on existing UN models. This paper investigates the financing gap for 'green' projects linked to planet-related SDG targets in India. It builds an argument for utilizing green bonds as an instrument to bridge the gap. After establishing the potential of green bonds in raising the finance to meet India's planet-related SDG targets, we look at the current policy landscape and suggest recommendations for successful execution. The paper concludes that deepening of the corporate fixed income securities market and firming up guidelines in line with India's climate action plans are inevitable before green bonds can be considered a viable financing option

Hypolipidemic, Hypoglycemic and Anti-oxidant Activities of Flower Extracts of Allamanda Violacea A. DC (Apocynaceae)

Purpose: To investigate the anti-dyslipidemic, anti-oxidant and anti-diabetic activities of the aqueous extract and solvent fractions of A. violacea flowers.Methods: The aqueous extract was fractionated into petroleum ether, ether, chloroform, chloroformmethanol (4:1) and chloroform-methanol (3:2) fractions. Lipid lowering activity was evaluated in two models, viz, triton WR-1339 - induced hyperlipimea in rats as well as fructose-rich high fat diet. To assess anti-oxidant activity, in-vitro model of non-enzymic superoxide hydroxyl radicals and microsomal lipid peroxidation by non-enzymic inducer was adopted. Hypoglycemic activity was evaluated by sucrose-loaded rat model.Results: Amongst the fractions, ether and chloroform fractions caused marked decrease in the levels of total cholesterol (Tc), triglycerides (Tg), plasma lipids (Pl), and protein by 24, 23, 23 and 22 %, and 24, 22, 23 and 19 %, respectively. In rats fed with high fat diet (HFD), ether and chloroform fractions lowered Tc, Tg and, Pl by 26, 25 and 26 %, and 18, 19 and 20 %, respectively. Significant decrease in superoxide anions, hydroxyl radicals and microsomal lipid peroxidation by ether and chloroform fractions was also observed. Chloroform, chloroform-methanol (4:1) and chloroform-methanol (3:2) fractions showed antihyperglycaemic activity to the extent of 25.2, 21.6 and 23.2 %, respectively.Conclusion: The flowers of this plant, especially the ether and chloroform extracts, may be suitable as an anti-oxidant supplement for lipid management.Keywords: Allamanda violacea flowers, Anti-hyperlipidemic,  Anti-hyperglycemic, Anti-oxidant

CSR-Sustainability Monitor 2016 Edition

The report examines how large companies around the world communicate the impact of their non-financial activities through their CSR report (standalone or integrated)

Novel biotransformation of menthone by microbial strains and vermicompost microbial consortium

The aim of the study was to evaluate the ability of Trichoderma harzianum and Pseudomonas fluorescence and vermicompost microbial consortium to biotransform the monoterpene menthone. The different microbial transformation was carried out in different media including the control flask. Samples of different cultures were taken after every 24 hours, extracted with n-hexane and analysed by GC and GC-MS. The chemical structure of the bio transformed products were identified by GC and GC-MS. All the microbial strains led to the decomposition of menthone with time. The most valuable transformation was the production of menthol by vermicompost microbial strain. The obtained data indicated that vermicompost microbial consortium is a good biocatalyst to convert the ketonic group into hydroxyl group and showed the importance of various microbial strains in the biotransformation of the menthone.&nbsp