The Impact of The Green Bonds on The Financial Sustainability: Evidence From Egypt

Abstract

Egypt’s Vision 2030 delineates a comprehensive national strategy aimed at fostering sustainable development, with a particular emphasis on environmental conservation and economic advancement. Central to this vision is the integration of green finance instruments, notably green bonds, as pivotal tools for realizing environmental objectives while driving economic growth. However, the successful implementation of green bonds faces multifaceted challenges, including market dynamics, regulatory frameworks, and the establishment of robust monitoring mechanisms. This research conducts an in-depth exploration of the intricate relationship between green bonds, environmental sustainability, and economic development within the context of Egypt’s Vision. Drawing on a synthesis of academic literature and insights gleaned from international case studies, the study critically evaluates the mechanisms for implementing green bonds. It also identifies the financing challenges and opportunities inherent in Vision green economy aspirations, while proposing strategic pathways to enhance the efficacy of green bond deployment. Formulating a set of research hypotheses, the study examines the alignment of green bond implementation mechanisms with Vision 2030 objectives, evaluates the impact of market perceptions and regulatory frameworks on green bond financing effectiveness, and assesses the role of international collaborations in mitigating financing challenges. Furthermore, the research explores key variables such as environmental impact, green bonds, and financial sustainability to elucidate their interconnections and implications for sustainable development. By offering nuanced insights and actionable recommendations, this research aims to enrich the discourse on sustainable development and financial innovation in Egypt. It seeks to bridge existing knowledge gaps, inform strategic decision-making processes, and facilitate the formulation of evidence-based policies conducive to realizing Egypt’s sustainable development aspirations outlined in Vision 2030. Keywords: Egypt’s Vision 2030, Green Bonds, Sustainable Development, Financial Innovation, Environmental Sustainability, Economic Growth.