Green Bonds Flows and Renewable Energy Projects in Sub-Sahara African Countries
The global community has acknowledged the urgent need to address climate change, environmental degradation, capacity expansion of renewable energy and social inequality as response to the United Nations (UN) agenda for Sustainable Development Goals (SDGs). However, mobilizing enough finance for green projects like renewable energy in Sub-Sahara African countries is not only critical to combating climate change, but also addressing the rising renewable energy demand. On this backdrop, this study examines the role of green bonds flows in financing renewable energy projects in selected Sub-Sahara African countries. Using Times Series data SSA as a regional block, this study employed descriptive statistics, Pearson’s correlations and Generalized Method of Moments (GMM) to assess the effect of green bonds (GRB), renewable energy investment (REI), CO2 emission and per capita income, PCI, (control variable) on renewable energy production from 2012 to 2023. Results of our analysis show that GRB and REI significantly and positively spurred renewable energy production; CO2 emission exerted a negative and significant effect on renewable energy production while the negative effect of PCI is insignificant. Based on these findings, we recommend that governments and financial institutions in Sub-Saharan Africa should promote the issuance and investment in green bonds, both public and private sectors should be encouraged to invest significantly in renewable energy infrastructure, and a dire need to implement and enforce stringent environmental policies that will reduce CO2 emission in SSA countries. Keywords: Green bonds, Renewable energy, SSA countries, GMM
Keywords: Green bonds, Renewable energy, SSA countries, GMM
Citation: , & Oluwole, F.O. (2025). Green Bonds Flows and Renewable Energy Projects in Sub-Sahara African Countries. International Journal of Innovative Research in Accounting and Sustainability, 10(4), 18-29.