The challenges and opportunities of green financing in Palestine from the perspective of banks

Saleem Khoffash, Bahaa Subhi Awwad

Article ID: 8800
Vol 8, Issue 12, 2024

VIEWS - 39 (Abstract) 14 (PDF)

Abstract


The study aimed to demonstrate that Palestinian banks have the potential to increase green financing by enhancing public sector understanding instead of focusing solely on the private sector, in addition to providing insights from employees of Palestinian banks listed on the Palestine Stock Exchange regarding the key challenges and opportunities related to green financing in Palestine specifically. It posed two central questions: What are the opportunities and challenges in implementing green finance in Palestine, and what level of government and private sector support exists? The study used the descriptive analytical approach, through interviews and surveys, the study targeted 10 heads of credit departments and a non-probability sample of 350 bank employees. The findings revealed a strong commitment from the government to promote green finance. At the same time, the private sector showed reluctance to engage in external investments. Key challenges included political instability and limited financial resources, though international aid was a significant opportunity to advance green finance. The study recommended increasing public awareness and fostering stronger coordination between the government and private sector, possibly incorporating competition from neighboring countries to further develop Palestine’s green finance strategy.


Keywords


green finance; challenges; opportunities; Palestinian bank

Full Text:

PDF


References


Abdul Gafoor, C. P., Perumbalath, S., Daimari, P., et al. (2024). Trends and patterns in green finance research: A bibliometric study. Innovation and Green Development, 3(2), 100119. https://doi.org/10.1016/j.igd.2023.100119

Agrawal, R., Agrawal, S., Samadhiya, A., et al. (2024). Adoption of green finance and green innovation for achieving circularity: An exploratory review and future directions. Geoscience Frontiers, 15(4), 101669. https://doi.org/10.1016/j.gsf.2023.101669

Ahmad, H., Yaqub, M., & Lee, S. H. (2023). Environmental-, social-, and governance-related factors for business investment and sustainability: a scientometric review of global trends. Environment, Development and Sustainability, 26(2), 2965–2987. https://doi.org/10.1007/s10668-023-02921-x

Awwad, B. S. A. (2018). Market power and performance: An Islamic banking perspective. Corporate Ownership and Control, 15(3–1), 163–171. Portico. https://doi.org/10.22495/cocv15i3c1p2

Awwad, B., & Zidan, J. (2021). The role of the clearance crisis on public expenditure and budget deficit in Palestine. International Journal of Business Ethics and Governance, 1-40.‏

Awwad, B. S. (2022). The role of environmental disclosure in enhancing the market value of industrial and service companies listed on the Palestinian stock exchange. International Journal of Entrepreneurship. 26(2); 1-12. ISSN: 1939-4675.

Chang, K., Luo, D., Dong, Y., et al. (2024). The impact of green finance policy on green innovation performance: Evidence from Chinese heavily polluting enterprises. Journal of Environmental Management, 352, 119961. https://doi.org/10.1016/j.jenvman.2023.119961

Cheberyako, O. V., Varnalii, Z. S., Borysenko, O. A., et al. (2021). “Green” finance as a modern tool for social and environmental security. IOP Conference Series: Earth and Environmental Science, 915(1), 012017. https://doi.org/10.1088/1755-1315/915/1/012017

European Commission’s. (2018). Action Plan: Financing Sustainable Growth. Available online: https://climate-adapt.eea.europa.eu/en/metadata/publications/action-plan-on-financing-sustainable-growth (accessed on 2 June 2024).

Falcone, P. M., & Sica, E. (2019). Assessing the Opportunities and Challenges of Green Finance in Italy: An Analysis of the Biomass Production Sector. Sustainability, 11(2), 517. https://doi.org/10.3390/su11020517

Feng, W., Bilivogui, P., Wu, J., et al. (2023). Green finance: current status, development, and future course of actions in China. Environmental Research Communications, 5(3), 035005. https://doi.org/10.1088/2515-7620/acc1c7

Global Sustainable Investment review. (2022). Global Sustainable Investment review 2022. Available online: https://www.gsi-alliance.org/wp-content/uploads/2023/12/GSIA-Report-2022.pdf (accessed on 2 June 2024).

Hailiang, Z., Iqbal, W., Chau, K. Y., et al. (2022). Green finance, renewable energy investment, and environmental protection: empirical evidence from B.R.I.C.S. countries. Economic Research-Ekonomska Istraživanja, 36(2). https://doi.org/10.1080/1331677x.2022.2125032

International Finance Corporation (IFC). (2019). Green Buildings: A Finance and Policy Blueprint for Emerging Markets,” Available online: https://www.ifc.org/en/insights-reports/2019/green-buildings-report (accessed on 2 June 2024).

Krastev, B., & Krasteva-Hristova, R. (2024). Challenges and Trends in Green Finance in the Context of Sustainable Development—A Bibliometric Analysis. Journal of Risk and Financial Management, 17(7), 301. https://doi.org/10.3390/jrfm17070301

Kumar, B., Kumar, L., Kumar, A., et al. (2023). Green finance in circular economy: a literature review. Environment, Development and Sustainability, 26(7), 16419–16459. https://doi.org/10.1007/s10668-023-03361-3

Liu, C., & Wu, S. S. (2023). Green finance, sustainability disclosure and economic implications. Fulbright Review of Economics and Policy, 3(1), 1–24. https://doi.org/10.1108/frep-03-2022-0021

Mavlutova, I., Spilbergs, A., Verdenhofs, A., et al. (2023). The Role of Green Finance in Fostering the Sustainability of the Economy and Renewable Energy Supply: Recent Issues and Challenges. Energies, 16(23), 7712. https://doi.org/10.3390/en16237712

Megha, C. (2021). Green Finance in India: Progress and Challenges. Research Journal of Humanities and Social Sciences. 12(4).

Ozili, P. K. (2022). Green finance research around the world: a review of literature. International Journal of Green Economics, 16(1), 56. https://doi.org/10.1504/ijge.2022.125554

Radzewicz-Bak, B. (2024). Preparing Financial Sectors for a Green Future. Departmental Papers. https://doi.org/10.5089/9798400255250.087

Rahman, M. H., Rahman, J., Tanchangya, T., et al. (2023). Green banking initiatives and sustainability: A comparative analysis between Bangladesh and India. Research in Globalization, 7, 100184. https://doi.org/10.1016/j.resglo.2023.100184

Rahman, S., Moral, I. H., Hassan, M., et al. (2022). A systematic review of green finance in the banking industry: perspectives from a developing country. Green Finance, 4(3), 347–363. https://doi.org/10.3934/gf.2022017

Rapi K., Maisarah S., Ayu F. S., et al. (2021). Green Finance for the Era of Post COVID-19: A Systematic Literature, Proceedings of the Conference towards ASEAN Chairmanship 2023 (T-A-C 23 2021). Atlantis Press. https://doi.org/10.2991/aebmr.k.211207.030

Razia, A. S., Alkababji, M. W., Ruzieh, A. S., et al. (2024). Competitive Advantage in Light of AI to Achieve Innovative as a Key of the SDGS: Palestinian Insurance Industry. Journal of Lifestyle and SDGs Review, 4, e01870. https://doi.org/10.47172/2965-730x.sdgsreview.v4.n00.pe01870

Razia, A., Omarya, M., Razia, B., Awwad, B., & Ruzieh, A. (2023). Examining how unemployment, inflation and their related aspects affected economic growth in Palestine: The period from 1991 to 2020. Heliyon, 9(11), e21081.‏

United Nations Environment Programmer’s. (2017). Green Finance Progress Report. Available online: https://www.unep.org/resources/report/green-finance-progress-report (accessed on 2 June 2024).

Van Niekerk, A. J. (2024). Economic Inclusion: Green Finance and the SDGs. Sustainability, 16(3), 1128. https://doi.org/10.3390/su16031128

World Bank. (2024). Flagship report; global economic prospects. Available online: https://thedocs.worldbank.org/en/doc/661f109500bf58fa36a4a46eeace6786-0050012024/original/GEP-Jan-2024.pdf (accessed on 2 June 2024).




DOI: https://doi.org/10.24294/jipd.v8i12.8800

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Saleem Khoffash, Bahaa Subhi Awwad

License URL: https://creativecommons.org/licenses/by/4.0/

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