Green banks in Tunisia: Issues and challenges

Nadia Mansour

Article ID: 2099
Vol 7, Issue 2, 2023

VIEWS - 1104 (Abstract) 624 (PDF)

Abstract


This paper explores the development of the concept of “green banks” in Tunisia, focusing on the role of regulators and the central bank in ensuring this transmission. The paper also examines the involvement of banks in the green economic transition and the various challenges. The study is based on the review of articles and research works regarding the emergence of green banks, especially in Tunisia (2018–2022); it also collected information and statistics from the websites and reports of Tunisian banks. The results of this work showed the critical role played by the Central Bank of Tunisia in encouraging banks to move towards greening the system. Also, several Tunisian banks are aware of the seriousness of climate change and have tried to implement several initiatives and services to accelerate green growth. However, Tunisia still needs to catch up with developed and some developing countries. Our findings help bankers and regulators better address climate change and its effect on the financial sector to achieve greater financial stability. These results contribute to banking in Tunisia by providing bankers and regulators with new tools to manage the impact of climate change on the banking sector.

Keywords


green bonds; green finance; greens banking; finance; Tunisia

Full Text:

PDF


References


Abdelmalek MB, Nouiri I (2020). Study of trends and mapping of drought events in Tunisia and their impacts on agricultural production. Science of the Total Environment 734: 139311. doi: 10.1016/j.scitotenv.2020.139311

African Development Bank (2022). The African Development Bank launches a model for deploying green finance across the continent (French). Available online: https://www.afdb.org/fr/news-and-events/la-banque-africaine-de-developpement-lance-un-modele-de-deploiement-des-financements-verts-travers-le-continent-56904 (accessed on 24 February 2023).

Amen Bank. Available online: https://www.amenbank.com.tn (accessed on 25 February 2023).

Amouri A, Festa G, Shams SR, et al. (2021). Technological propensity, financial constraints, and entrepreneurial limits in young entrepreneurs’ social business enterprises: The tunisian experience. Technological Forecasting and Social Change 173: 121126. doi: 10.1016/j.techfore.2021.121126

Aslam W, Jawaid ST (2022). Green banking adoption practices: Improving environmental, financial, and operational performance. International Journal of Ethics and Systems; ahead of print. doi: 10.1108/IJOES-06-2022-0125

Attig-Bahar F, Ritschel U, Akari P, et al. (2021). Wind energy deployment in Tunisia: Status, drivers, barriers and research gaps—A comprehensive review. Energy Reports 7: 7374–7389. doi: 10.1016/j.egyr.2021.10.087

Ayari J, Barbieri M, Barhoumi A, et al. (2023). Trace metal element pollution in media from the abandoned Pb and Zn mine of Lakhouat, Northern Tunisia. Journal of Geochemical Exploration 247: 107180. doi: 10.1016/j.gexplo.2023.107180

Azad MAK, Islam MA, Sobhani FA, et al. (2022). Revisiting the current status of green finance and sustainable finance disbursement: A policy insights. Sustainability 14(14): 8911. doi: 10.3390/su14148911

Banque de Tunisie (n.d.). Ecolo energy (French). Available online: https://www.bt.com.tn/ecolo-energio-entreprises (accessed on 25 February 2023).

Besser H, Dhaouadi L, Hadji R, et al. (2021). Ecologic and economic perspectives for sustainable irrigated agriculture under arid climate conditions: An analysis based on environmental indicators for southern Tunisia. Journal of African Earth Sciences 177: 104134. doi: 10.1016/j.jafrearsci.2021.104134

BH Bank (n.d.). Sustainable development (French). Available online: https://www.bhbank.tn/article/developpement%20durable (accessed on 25 February 2023).

Caldecott B, Clark A, Koskelo K, et al. (2021). Stranded assets: Environmental drivers, societal challenges, and supervisory responses. Annual Review of Environment and Resources 46: 417–447. doi: 10.1146/annurev-environ-012220-101430

Chen H, Liu C, Xie F, et al. (2019). Green credit and company R&D level: Empirical research based on threshold effects. Sustainability 11(7): 1918. doi: 10.3390/su11071918

Chen J, Siddik AB, Zheng GW, et al. (2022). The effect of green banking practices on banks’ environmental performance and green financing: An empirical study. Energies 15(4): 1292. doi: 10.3390/en15041292

Chen Z, Mirza N, Huang L, Umar M (2022). Green banking—Can financial institutions support green recovery? Economic Analysis and Policy 75: 389–395. doi: 10.1016/j.eap.2022.05.017

Chenguel MB, Mansour N (2023). Green finance: Between commitment and illusion. Competitiveness Review: An International Business Journal; ahead of print. doi: 10.1108/CR-10-2022-0162

CICC Research, CICC Global Institute (2022). Green finance: Clarifying functions and capacity. In: Guidebook to Carbon Neutrality in China. Springer. doi: 10.1007/978-981-16-9024-2_4

ClimateWatch (2020). Historical GHG emissions. Available online: https://www.climatewatchdata.org/ghg-emissions (accessed on 24 February 2023).

Conseil du Marché Financier (2019). Guide to issuing green, socially responsible and sustainable bonds in Tunisia (French). Available online: https://www.cmf.tn/sites/default/files/pdfs/reglementation/consultations/guide_draft_consultation.pdf (accessed on 24 February 2023).

Cortellini G, Panetta IC (2021). Green bond: A systematic literature review for future research agendas. Journal of Risk and Financial Management 14(12): 589. doi: 10.3390/jrfm14120589

Delardas O, Giannos P (2023). Towards energy transition: Use of blockchain in renewable certificates to support sustainability commitments. Sustainability 15(1): 258. doi: 10.3390/su15010258

Denyer D, Tranfield D (2006). Using qualitative research synthesis to build an actionable knowledge base. Management Decision 44(2): 213–227. doi: 10.1108/00251740610650201

Devas H (1994). Green finance. European Energy & Environmental Law Review 3(8): 220–222. doi: 10.54648/eelr1994037

Dikau S, Volz U (2021). Central bank mandates, sustainability objectives and the promotion of green finance. Ecological Economics 184: 107022. doi: 10.1016/j.ecolecon.2021.107022

Du Pisani JA (2006). Sustainable development—Historical roots of the concept. Environmental Sciences 3(2): 83–96. doi: 10.1080/15693430600688831

Dziwok E, Jäger J (2021). A classification of different approaches to green finance and green monetary policy. Sustainability 13(21): 11902. doi: 10.3390/su132111902

Elahi E, Khalid Z, Zhang Z (2022). Understanding farmers’ intention and willingness to install renewable energy technology: A solution to reduce the environmental emissions of agriculture. Applied Energy 309: 118459. doi: 10.1016/j.apenergy.2021.118459

Elisa A, Juan-José NS, Francisco JF (2021). Sustainable banking: A literature review and integrative framework. Finance Research Letters 42: 101932. doi: 10.1016/j.frl.2021.101932

Environmental Finance Data (2023). Available online: https://efdata.org/ (accessed on 24 February 2023).

European Bank for Reconstruction and Development. Country strategy for Tunisia 2018–2023 (French). Available online: https://www.ebrd.com/documents/strategy-and-policy-coordination/tunisia-country-strategy-in-french.pdf (accessed on 25 February 2023).

European Banking Federation (2017). Briefing note: Greening the financial system: Exploring the ways forward. Available online: https://www.ebf.eu/ebf-media-centre/briefing-note-greening-the-financial-system-october-2017/ (accessed on 18 February 2023).

German Development Institute (DIE) (2016). Green finance: Actors, challenges and policy recommendations. Available online: https://www.idos-research.de/en/briefing-paper/article/green-finance-actors-challenges-and-policy-recommendations/ (accessed on 1 August 2023).

Green Finance Study Group (2016). G20 Green Finance Synthesis Report. Available online: http://www.g20.utoronto.ca/2016/green-finance-synthesis.pdf (accessed on 18 February 2023).

Groupe Société Générale (n.d.). Green financing (French). Available online: https://www.uib.com.tn/entreprises/finacement-de-vos-projets/financement-vert (accessed on 25 February 2023).

Hadaś-Dyduch M, Puszer B, Czech M, et al. (2022). Green bonds as an instrument for financing ecological investments in the V4 countries. Sustainability 14: 12188. doi: 10.3390/ su141912188

Hailiang Z, Iqbal W, Chau KY, et al. (2023). Green finance, renewable energy investment, and environmental protection: Empirical evidence from BRICS countries. Economic Research-Ekonomska Istraživanja 36(2): 2125032. doi: 10.1080/1331677X.2022.2125032

Holechek JL, Geli HM, Sawalhah MN, et al. (2022). A global assessment: Can renewable energy replace fossil fuels by 2050? Sustainability 14(8): 4792. doi: 10.3390/su14084792

International Development Finance Club (IDFC) (2012). Green finance mapping. Available online: https://www.idfc.org/green-finance-mapping/ (accessed on 1 August 2023).

International Finance Corporation (IFC) (2016). Available online: https://www.greenclimate.fund/ae/ifc (accessed on 1 August 2023).

Khairunnessa F, Vazquez-Brust DA, Yakovleva N (2021). A review of the recent developments of green banking in Bangladesh. Sustainability 13(4): 1904. doi: 10.3390/su13041904

Khiari W, Ben Sassi S (2019). On identifying the systemically important Tunisian banks: An empirical approach based on the ΔCoVaR measures. Risks 7(4): 122. doi: 10.3390/risks7040122

Korzeb Z, Niedziółka P, Zegadło M (2022). Assessment of the impact of commercial banks’ operating activities on the natural environment by use of cluster analysis. Risks 10(6): 119. doi: 10.3390/risks10060119

Kotb A, Elbardan H, Halabi H (2020). Mapping of internal audit research: A post-Enron structured literature review. Accounting, Auditing & Accountability Journal 33(8): 1969–1996. doi: 10.1108/aaaj-07-2018-3581

Mahmood H, Maalel N, Zarrad O (2019). Trade openness and CO2 emissions: Evidence from Tunisia. Sustainability 11(12): 3295. doi: 10.3390/su11123295

Mansour N (2023). Green technology innovation and financial services system: Evidence from China. Businesses 3(1): 98–113. doi: 10.3390/businesses3010008

Marzougui N, Ounalli N, Sabbahi S, et al. (2022). How can sewage sludge use in sustainable Tunisian agriculture be increased? Sustainability 14(21): 13722. doi: 10.3390/su142113722

Mir AA, Bhat AA (2022). Green banking and sustainability—A review. Arab Gulf Journal of Scientific Research 40(3): 247–263. doi: 10.1108/AGJSR-04-2022-0017

Noh HJ (2018). Financial strategy to accelerate green growth. ADBI Working Paper No. 866, Asian Development Bank Institute (ADBI), Tokyo. Available online: https://www.econstor.eu/handle/10419/190287 (accessed on 25 July 2023).

Nordhaus WD (2007). A review of the Stern review on the economics of climate change. Journal of Economic Literature 45(3): 686–702.

Petticrew M, Roberts H (2008). Systematic reviews in the social sciences: A practical guide. Wiley-Blackwell.

Robinson WC (1973). Review symposium. Demography 10(2): 289–299. doi: 10.2307/2060819

Sabine D, Christian S (2018). Green financing, interrupted. Potential directions for sustainable finance in Luxembourg. Local Environment 23(7): 717–733. doi: 10.1080/13549839.2018.1428792

Sakaya AJ (2023). Fear of COVID-19 and green bank service purchase intention: The mediating effect of customer empowerment and customers’ perceived value of digital service transactions. Arab Gulf Journal of Scientific Research; ahead of print. doi: 10.1108/AGJSR-08-2022-0137

Salem HH, Mansour N, Salem SB (2023). Climate risks in Tunisia. In: Alareeni B, Hamdan A (editors). Sustainable Finance, Digitalization and the Role of Technology. Springer. pp. 763–782. doi: 10.1007/978-3-031-08084-5_55

Société Tunisienne de Banque (n.d.). Availble online: https://www.stb.com.tn/fr/ (accessed on 25 February 2023).

Statista (2022). Value of green bond issuance of the largest banks worldwide in 2022. Available online: https://www.statista.com/statistics/1291144/green-bond-issuance-value-of-largest-banks/ (accessed on 25 July 2023).

Stern N (2007). The Economics of Climate Change: The Stern Review. Cambridge University Press. doi: 10.1017/CBO9780511817434

Supriyanto E, Sentanuhady J, Hasan WH, et al. (2022). Policy and strategies of tariff incentives related to renewable energy: Comparison between Indonesia and other developing and developed countries. Sustainability 14: 13442. doi: 10.3390/su142013442

UBCI (2021). UBCI, a responsible bank for a sustainable economy (French). Available online: https://www.ubci.tn/wp-content/blogs.dir/2021/03/UBCI-Rapport-RSE.pdf (accessed on 25 February 2023).

United Nations Environment Programme (UNEP) (2011). UNEP FI Guide to Banking & Sustainability. Understanding and Implementing Sustainability in Your Bank Based on the UNEP Statement of Commitment by Financial Institutions on Sustainable Development. Available online: https://wedocs.unep.org/20.500.11822/32163 (accessed on 1 August 2023).

United Nations Environment Programme (UNEP) (2009). Fiduciary responsibility—Legal and practical aspects of integrating environmental, social and governance issues into institutional investment. Available online: https://www.unepfi.org/industries/investment/fiduciary-responsibility-legal-and-practical-aspects-of-integrating-environmental-social-and-governance-issues-into-institutional-investment/ (accessed on 25 July 2023).

United Nations Conference on Environment and Development: Rio Declaration on Environment and Development (1992). International Legal Materials 31(4): 874–880.

Uzawa H (2003). Economic Theory and Global Warming. Cambridge University Press.

Valls Martínez MdC, Martín-Cervantes PA, Peña Rodríguez S (2021). Ethical banking and poverty alleviation banking: The two sides of the same solidary coin. Sustainability 13: 11977. doi: 10.3390/su132111977

van Veelen B (2021). Cash cows? Assembling low-carbon agriculture through green finance. Geoforum 118: 130–139. doi: 10.1016/j.geoforum.2020.12.008

Weilandt R (2018). Socio-economic challenges to Tunisia’s democratic transition. European View 17(2): 210–217. doi: 10.1177/1781685818805681

White MA (1996). Environmental finance: Value and risk in an age of ecology. Business Strategy and Environment 5(3): 198–206. doi: 10.1002/(SICI)1099-0836(199609)5:3<198::AID-BSE66>3.0.CO;2-4

World Bank (2018). The World Bank in Tunisia. The situation in Tunisia remains mixed: While significant progress has been made in the process of political transition towards an open and democratic system of governance, the economic transition has not kept pace (French). Available online: https://www.banquemondiale.org/fr/country/tunisia (accessed on 26 February 2023).

World Bank (2020). World Bank news release: Loan and credit summary. Availabnle online: https://www.worldbank.org/en/news/loans-credits/2020/06/12/tunisia-first-resilience-and-recovery-emergency-development-policy-financing (accessed on 24 February 2023).

World Bank (2021). Tunisia First Resilience and Recovery Emergency Development Policy Financing. Available online: https://documents1.worldbank.org/curated/en/650751592619063714/pdf/Tunisia-First-Resilience-and-Recovery-Emergency-Development-Policy-Financing.pdf (accessed on 24 February 2023).

World Bank (2022). Risk of global recession in 2023 rises amid simultaneous rate hikes. Available online: https://www.worldbank.org/en/news/press-release/2022/09/15/risk-of-global-recession-in-2023-rises-amid-simultaneous-rate-hikes#:~:text=WASHINGTON%2C%20September%2015%2C%202022%E2%80%94,lasting%20harm%2C%20according%20to%20a (accessed on 25 July 2023).

Zadek S, Flynn C (2013). South-originating Green Finance: Exploring the potential. Available online: https://www.iisd.org/system/files/publications/south-originated_green_finance_en.pdf (accessed on 24 February 2023).

Zhang F, Pant D, Logan BE (2011). Long-term performance of activated carbon air cathodes with different diffusion layer porosities in microbial fuel cells. Biosensors and Bioelectronics 30(1): 49–55. doi: 10.1016/j.bios.2011.08.025

Zhang X, Wang Z, Zhong X, et al. (2022). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability 14(2): 989. doi: 10.3390/su14020989

Zimmermann S (2019). Same but different: How and why banks approach sustainability. Sustainability 11: 2267. doi: 10.3390/su11082267




DOI: https://doi.org/10.24294/jipd.v7i2.2099

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Nadia Mansour

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

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