Abstract
This paper analyzes the role assumed by new forms of finance that are taking place within EU policies and in Italy, specifically through the National Plan for Recovery and Resilience (PNRR) (Social Impact Agenda for Italy, PNRR e Impact Investing, Sfide e opportunità, 2017; Gallucci in Green Finance - Finanza responsabile per la sostenibilità ambientale, Franco Angeli Edizioni, 2021) that falls under the scope of fintech. The goal of this research is to investigate the effects of certain financial measures envisaged by the EU Next Generation on the ship** industry. In particular, the study focuses on green bonds, which, within the European Union, from the very early stages of drafting the post-Covid-19 recovery plan, have been attributed a crucial role in achieving the objectives of the ecological transition. By conducting an empirical study, we suggest an application of green bonds in the maritime sector. Specifically, this study analyzes the effects of implementing the Cold Ironing Project, Green Ports’ innovative PNNR measure within the EU Next Generation. Considering that the reduction of emissions in ports is an issue of particular importance due to their proximity to human settlements, cold ironing provides a form of sustainable power for ships while they are docked in ports to provide electricity, lighting, cooling, heating, and other service auxiliaries.
Arnone, M: elaboration parts on sustainable finance and green bond, Crovella, T: elaboration part on maritime sector and cold ironing. Introduction, Methodology and conclusion are elaborated in equal parts.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Cold Ironing technology is a supply system for ships through connections to the local electricity grid via cable in order to avoid the use of fossil fuels and greenhouse gas emissions (Abu Bakar et al., 2023).
- 2.
PEPFAR countries: Angola, Botswana, Burundi, Cameroon, Côte d’Ivoire, Dominican Republic, Democratic Republic of Congo, Eswatini, Ethiopia, Haiti, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Rwanda, South Africa, South Sudan, Tanzania, Uganda, Ukraine, Vietnam, Zambia Zimbabwe.
References
Abu Bakar, N. N., Bazmohammadi, N., Vasquez, J. C., & Guerrero, J. M. (2023). Electrification of onshore power systems in maritime transportation towards decarbonization of ports: A review of the cold ironing technology. Renewable and Sustainable Energy Reviews, 178, 113243. https://doi.org/10.1016/j.rser.2023.113243
Ahl, C., Frey, E., & Steimetz, S. (2017). The effects of financial incentives on vessel speed reduction: Evidence from the Port of Long Beach Green Flag Incentive Program. Maritime Economics & Logistics, 19, 601–618.
Ahuja, N. (2015). Green banking in India: A review of literature. International Journal for Research in Management and Pharmacy, 4(1), 11–16.
Anh Tu, C., Rasoulinezhad, E., & Sarker, T. (2020). Factors Influencing the Green Bond Market Expansion: Evidence from a Multidimensional Analysis. Journal of Risk and Financial Management, 13, 126.
Antoniuk, Y., & Leirvik, T. (2021). Climate transition risk and the impact on green bonds. Journal of Risk and Financial Management, 14, 597.
Arif, M., Hasan, M., Alawi, S. M., & Naeem, M. A. (2021). Covid-19 and time-frequency connectedness between green and conventional financial markets. Global Finance Journal, 49, 100650.
Bakar, N. N. A., Bazmohammadi, N., Çimen, H., Uyanik, T., Vasquez, J. C., & Guerrero, J. M. (2022). Data-driven ship berthing forecasting for cold ironing in maritime transportation. Applied Energy, 326, 119947. https://doi.org/10.1016/j.apenergy.2022.119947
Baker, M. P., Bergstresser, D. B., Serafeim, G., & Wurgler, J. A. (2018). Financing the response to climate change: The pricing and ownership of U.S. GreenBonds (Working Paper).
Ballini, F., & Bozzo, R. (2015). Air pollution from ships in ports: The socio-economic benefit of cold- ironing technology. Research in Transportation Business & Management, 17, 92–98. https://doi.org/10.1016/j.rtbm.2015.10.007
Banca d’Italia. (2022). Report on sustainable investments and climate-related risks, p. 42. https://www.bancaditalia.it/pubblicazioni/rapporto-investimenti-sostenibili/2022/en-RISC-2022.pdf?language_id=1
Banga, J. (2019). The green bond market: A potential source of climate finance for develo** countries. Journal of Sustainable Finance & Investment, 9, 17–32.
Bollen, N. P. (2007). Mutual fund attributes and investor behavior. Journal of Financial and Quantitative Analysis, 42(3), 683–708.
Bose, S., Khan, H. Z., Rashid, A., & Islam, S. (2017). What drives green banking disclosure? An institutional and corporate governance perspective. Asia Pacific Journal of Management, 35, 501. https://doi.org/10.1007/s10490-017-9528-x
Bull, M. (2008). Challenging tensions: Critical, theoretical and empirical perspectives on social enterprise. International Journal of Entrepreneurial Behavior & Research, 14(5), 268–275.
Carè, R. (2018). Sustainable banking: Issues and challenges. Palgrave Macmillan.
Chang, C. C., & Wang, C. M. (2012). Evaluating the effects of green port policy: Case study of Kaohsiung harbor in Taiwan. Transportation Research Part D: Transport and Environment, 17(3), 185–189. https://doi.org/10.1016/j.trd.2011.11.006
Chiappini, H. (2017). Social impact funds: Definition, assessment and performance. Springer.
Climate Bond Initiative. (2022). https://www.climatebonds.net/
Colarossi, D., & Principi, P. (2020). Technical analysis and economic evaluation of a complex shore-to-ship power supply system. Applied Thermal Engineering, 181, 115998. https://doi.org/10.1016/j.applthermaleng.2020.115988
Cotugno, M., Cicchiello, A. F., Monferrà, S., & Perdichizzi, S. (2022). Credit spreads in the European green bond market: A daily analysis of the Covid-19 pandemic impact. Journal of International Financial Management Account, 33, 383–411. https://doi.org/10.1111/jifm.12150
Dan, A., & Tiron-Tudor, A. (2021). The determinants of green bond issuance in the European Union. Journal of Risk and Financial Management, 14, 446.
Du, K., Monios, J., & Wang, Y. (2019). Green port strategies in China. In Green ports (pp. 211–229). Elsevier. https://doi.org/10.1016/B978-0-12-814054-3.00011-6
Dyduch, M. H., Puszer, B., Czech, M., & Cichy, J. (2022). Green bonds as an instrument for financing ecological investments in the V4 countries. Sustainability, 14, 12188.
Ehlers, T., & Packer, F. (2022). Green bond finance and certification. BIS Quarterly Review, 2017, 89–104. https://www.bis.org/publ/qtrpdf/r_qt1709h.htm
Elsayed, A. H., Naifar, N., Nasreen, S., & Tiwari, A. K. (2022). Dependence structure and dynamic connectedness between green bonds and financial markets: Fresh insights from time-frequency analysis before and during Covid-19 pandemic. Energy Economics, 107, 105842.
Endelman. (2018). Edelman trust barometer global report. https://www.edelman.com/sites/g/files/aatuss191/files/2018-11/Edelman_Trust_Baromter_Institutional_Investor_US_Results_0.pdf
European Banking Federation. (2017). Towards a green finance framework. https://www.ebf.eu/wp-content/uploads/2017/09/Geen-finance-complete.pdf
European Commission. (2019). Communication from the commission to the European Parliament. The European Council, The Council, The European Economic And Social Committee And The Committee Of The Regions—The European Green Deal. https://eur-lex.europa.eu/resource.html?uri=cellar:b828d165-1c22-11ea-8c1f-01aa75ed71a1.0002.02/DOC_1&format=PDF
European Commission. (2022). Reducing emissions from the ship** sector. https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-ship**-sector_en#:~:text=At%20EU%20level%2C%20maritime%20transport,effective%20global%20measures%20are%20desirable
Fahimnia, B., Sarkis, J., & Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics, 162, 101–114.
Flaherty, M., Gevorkyan, A., Radpour, S., & Semmler, W. (2017). Financing climate policies through climate bonds–A three stage model and empirics. Research in International Business and Finance, 42, 468–479.
Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environment al awareness of investors. Academy of Management Journal, 56, 758–781.
Flammer, C. (2021). Corporate green bonds. Journal of Financial Economics, 142(2), 499–516.
Fragiacomo, P., & Genovese, M. (2020). Numerical simulations of the energy performance of a PEM water electrolysis based high-pressure hydrogen refueling station. International Journal of Hydrogen Energy, 45, 27457–27470.
Frisma Prisandy, R., & Widyaningrum, W. (2022). Green Bond in Indonesia: The challenges and opportunities, in: Indonesia Post-Pandemic Outlook: Rethinking Health and Economics Post-Covid-19 (A. P. Sunjaya, Y. B. Wang, R. Sagita, & D. Sugiharti, Eds., pp. 259–278). BRIN Publishing. https://penerbit.brin.go.id/press/catalog/download/537/527/11656-1?inline=1
Fuchs, S., Kachi, A., Sidner, L., & Westphal, M. (2021). Aligning financial intermediary investments with the Paris Agreement. World Resources Institute.
Gallucci, C. (2021). Green Finance—Finanza responsabile per la sostenibilità ambientale. Franco Angeli Edizioni.
G20 Green Finance Study Group. (2016). Green finance synthesis report. http://g20sfwg.org/wp-content/uploads/2021/07/2016_Synthesis_Rep
Gatti, L., Seele, R., & Rademacher, L. (2019). Grey zone in-greenwash out. A review of greenwashing research and implications for the voluntary-mandatory transition of CSR. International Journal of Corporate Social Responsibility, 4(1), 1–15.
Global Impact Investing Network. (2019). Core characteristics of impact investing. https://thegiin.org/characteristics
Global Sustainable Investment Alliance. (2019). Global sustainable investment review. http://www.gsi-alliance.org/wp-content/uploads/2019/03/GSIR_Review2018.3.28.pdf
Global Sustainable Investment Alliance. (2020). Global sustainable investment review. https://www.gsi-alliance.org/wp-content/uploads/2021/08/GSIR-20201.pdf
Grandin, P., & Saidane, D. (2011). La finance durable: une nouvelle finance pour le XXIe siècle? Revue Banque.
Heinkel, R., Kraus, A., & Zechner, J. (2001). The effect of green investment on corporate behavior. The Journal of Financial and Quantitative Analysis, 36(4), 431–449.
Hobson, M., Pell, E., Surgand, M., Kollamthodi, S., Moloney, S., Mesbahi, E., Wright, P., Cabezas, B., & Pazouki, K. (2007). Low carbon commercial ship**; Low carbon transport innovation strategy (LCTIS); Low carbon transport innovation strategy (LCTIS). Department for Transport: Policy, Guidance and Research (DfT).
Hoogendoorn, B., van de Zwan, P. W., & Thurik, A. R. (2019). Sustainable Entrepreneurship: The Role of Perceived Barriers and Risk. Journal of Business Ethics, 157(4), 1133–1154.
Horvath, S., Fasihi, M., & Breyer, C. (2018). Techno-economic analysis of a decarbonized ship** sector: Technology suggestions for a fleet in 2030 and 2040. Energy Conversation Management, 164, 230–241. https://doi.org/10.1016/j.apenergy.2022.119389
ICMA. (2018). Summary of green—social—sustainable bonds database providers. https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/2018-Sept_Green-and-Social-Bond-Databases-140918.pdf
Innes, A., & Monios, J. (2018). Identifying the unique challenges of installing cold ironing at small and medium ports–The case of Aberdeen. Transportation Research Part D: Transport and Environment, 62, 298–313. https://doi.org/10.1016/j.trd.2018.02.004
International Maritime Organization (IMO), Smith, T. W. P., Jalkanen, J. P., Anderson, B. A., Corbett, J. J., Faber, J., Hanayama, S., O’Keeffe, E., Parker, S., Johansson, L., et al. (2014). Third IMO GHG study 2014. https://research.manchester.ac.uk/en/publications/third-imo-greenhouse-gas-study-2014
Isaak, R. (2002). The making of the ecopreneur. Greener Management International: The Journal of Corporate Environmental Strategy and Practice, 38, 81–92.
Jafarzadeh, S., & Utne, I. B. (2014). A framework to bridge the energy efficiency gap in ship**. Energy, 69, 603–612.
Jeucken, M., & Bouma, J. J. (2001). Sustainable banking: The greening of finance. Greenleaf Publishing.
Kaminker, C., & Stewart, F. (2012). The role of institutional investors in financing clean energy (OECD Working Papers on Finance, Insurance and Private Pensions. OECD: No. 23).
Kapraun, J., Latino, C., Scheins, C., & Schlag, C. (2021). Which bonds trade at a green bond premium? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3347337
Karpf, A., & Mandel, A. (2017). Does it pay to be green? (Working paper). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2923484
Kollamthodi, S., Pueyo, A., Gibson, G., Narkeviciute, N., Hawkes, A., Cesbron, S., Milnes, R., Harries, J., Zamparutti, T., Hernandez, G., Kaltsouni, S., Vancauwenbergh, S., Goldenman, G., Pålsson, C., Bengtsson, N., Rydbergh, T., Nilsson, L., Krantz, A., Weber, K., … Lindstad, H. (2013). Support for the impact assessment of a proposal to address maritime transport greenhouse gas emissions. European Commission—DG Climate Action.
Konstantinos, K., Nikas, A., Daniil, V., Kanellou, E., & Doukas, H. (2022). A multi-criteria decision support framework for assessing seaport sustainability planning: The case of Piraeus, A multi-criteria decision support framework for assessing seaport sustainability planning: The case of Piraeus. Maritime Policy and Management. https://doi.org/10.1080/03088839.2022.2047815
La Torre, M., Trotta, A., Chiappini, H., & Rizzello, A. (2019). Business models for sustainable finance: The case study of social impact, bonds. Sustainability, 11, 1887. https://doi.org/10.3390/su11071887
Law, L. C., Foscoli, B., Mastorakos, E., & Evans, S. (2021). A comparison of alternative fuels for ship** in terms of lifecycle energy and cost. Energies. https://doi.org/10.3390/en14248502
Lindenberg, N., & Volz, U. (2016). Green banking regulation: Setting out a framework. Practitioners’ Dialogue on Climate Investments (PDCI). https://www.die-gdi.de/uploads/media/WG_3_PB_LINDENBERG_VOLZ.PDF
Lister, J., Taudal Poulsen, R., & Ponte, S. (2015). Orchestrating transnational environmental governance in maritime ship**. Global Environmental Change, 34, 185–195.
Löffler, K., Petreski, A., & Stephan, A. (2021). Drivers of green bond issuance and new evidence on the “greenium”. Eurasian Economic Review, 11, 1–24. https://doi.org/10.1007/s40822-020-00165-y
Longarela-Ares, A., Calvo-Silvosa, A., & Pérez-López, J.-B. (2020). The influence of economic barriers and drivers on energy efficiency investments in maritime ship**, from the perspective of the principal-agent problem. Sustainability, 12, 7493. https://doi.org/10.3390/su12197943
Lyon, T. P., & Maxwell, J. W. (2010). Greenwash: Corporate environmental disclosure under threat of audit. Journal of Economics & Management Strategy, 20, 3–41.
Maddox Consulting. (2013). Analysis of market barriers to cost effective GHG emission reductions in the maritime transport sector. http://op.europa.eu/en/publication-detail/-/publication/b641a090-04c8-4459-99fe-4302bb5b9176
Maltais, A., & Nykvist, B. (2020). Understanding the role of green bonds in advancing sustainability. Journal of Sustainable Finance & Investment. https://doi.org/10.1080/20430795.2020.1724864
Mocanu, M., Constanyin, L. G., & Cernat-Gruici, B. (2021). Sustainability bonds an international event study. Journal of Business Economics and Management, 22, 1551–1576.
Naso, V., Cedola, L., Villarini, M., & Del Zotto, L. (2006). Analisi tecnico-economica della elettrificazione del porto di Civitavecchia. Osservatorio ambientale di Civitavecchia sezione ambiente.
OECD. (2017). Investing in climate, investing in growth. http://www.oecd.org/env/cc/g-20-climate/synthesis-investing-in-climate-investing-in-growth.pdf
OECD. (2021). The inequalities-environment nexus: Towards a people-centered green transition (OECD green growth papers, No. 2021/01).
Pettit, S., Wells, P., Haider, J., & Abouarghoub, W. (2018). Revisiting history: Can ship** achieve a second socio-technical transition for carbon emissions reduction? Transportation Research Part D: Transport and Environment, 58, 292–307. https://doi.org/10.1016/j.trd.2017.05.001
Piccoli, T., Fermeglia, M., Bosich, D., Bevilaqua, P., & Sulligoi, G. (2021). Environmental assessment and regulatory aspects of cold ironing planning for a maritime route in the Adriatic Sea. Energies, 14(18), 5836. https://doi.org/10.3390/en14185836
PRPL. (2014). Piano regolatore del porto di Livorno. https://www.portialtotirreno.it/pianificazione-e-opere/piano-regolatore-portuale-livorno/
Reboredo, J. C. (2018). Green bond and financial markets: Co-movement, diversification and price spillover effects. Energy Economics, 74, 38–50.
Rehmatulla, N., & Smith, T. (2015a). Barriers to energy efficient and low carbon ship**. Ocean Engineering, 110, 102–112.
Rehmatulla, N., & Smith, T. (2015b). Barriers to energy efficiency in ship**: A triangulated approach to investigate the principal agent problem. Energy Policy, 84, 44–57.
REN21. (2017). Renewables 2017 global status report. REN21 Secretariat.
Revelli, C., & Paranque, B. (2017). Ethico-economic analysis of impact finance: The case of green bonds. https://ssrn.com/abstract=2983178 or https://doi.org/10.2139/ssrn.2983178
Rizzello, A. (2022). Green investing. Changing paradigms and future directions. Palgrawe Macmillan.
Rizzi, F., Pellegrini, C., & Battaglia, M. (2018). The structuring of social finance: Emerging approaches for supporting environmentally and socially impactful projects. Journal of Cleaner Production, 170, 805–817.
Roh, S., Thai, V., & Wong, Y. (2016). Towards sustainable ASEAN port development: Challenges and opportunities for Vietnamese ports. The Asian Journal of Ship** and Logistics, 32(2), 107–118.
Ryszawska, B. (2016). Sustainability transition needs sustainable finance. Copernican Journal of Finance & Accounting, 5(1), 185–194.
Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222–237.
Schoenmaker, D. (2017). Investing for the common good: A Sustainable finance framework. Bruegel.
Schoenmaker, D. (2018). A framework for sustainable finance (No. 12603. CEPR discussion papers).
Schoenmaker, D., & Schramade, W. (2018). Principles of sustainable finance. OUP.
Schub, J. (2015). Green banks: Growing clean energy markets by leveraging private investment with public financing. The Journal of Structured Finance, 21(3), 26–35.
Sciutto, D., & Pinceti, P. (2019). L’elettrificazione delle banchine dei porti del Mar, Ligure Occidentale. https://www.portsofgenoa.com/components/com_publiccompetitions/includes/download.php?id=595:elettrificazione-pog-green-port.pdf
Sean, K., & Padraig, O. (2014). Greening China’s financial markets. International Institute for Sustainable Development (IISD) Report. https://www.iisd.org
Semieniuk, G., Campiglio, E., Mercure, J. F., Volz, U., & Edwards, N. R. (2021). Low-carbon transition risk for finance. Wiley Interdisciplinary Reviews: Climate Change, 48, 101240.
Shrivastava, P. (1995). The role of corporations in achieving ecological sustainability. Academy of Management Review, 20(4), 936–960.
Social Impact Agenda for Italy. (2017). PNRR e impact investing. Sfide e opportunità.
Spengler, T., & Tovar, B. (2021). Potential of cold-ironing for the reduction of externalities from in-port ship** emissions: The state-owned Spanish port system case. Journal of Environmental Management, 279, 111807. https://doi.org/10.1016/j.jenvman.2020.111807
Steckel, J. C., Jakob, M., Flachsland, C., Kornek, U., Lessmann, K., & Edenhofer, O. (2017). From climate finance toward sustainable development finance. Wiley.
Sun, Q., Chen, L., Chou, M. C., & Meng, Q. (2022). Mitigating the financial risk behind emission cap compliance: A case in maritime transportation. Productions and Operations Managements. https://doi.org/10.1111/poms.13837
Sustainable Finance Forum. (2020). https://www.susfinforum.com/
Tang, D. Y., & Zhang, Y. (2020). Do shareholders benefit from green bonds? Journal of Corporate Finance, 61, 101427.
Taylor, C. (2010). Carpe crisis: Capitalizing on the breakdown of capitalism to consider the creation of social businesses. New York Law School. Law Review, 54(743), 10–22.
Transport& Environment. (2018). https://www.transportenvironment.org/
UNCTAD. (2021). Review of maritime transport 2021. https://unctad.org/webflyer/review-maritime-transport-2021
United Nations Environment Programme (UNEP). (2016). Definitions and concepts. Background note (Inquiry working paper 16/13).
Utting, P. (Ed.). (2015). Social and solidarity economy: Beyond the fringe (p. 386). London: Zed Books.
Van Duuren, E., Planting, A., & Scholtens, B. (2016). ESG integration and the investment management process: Fundamental investing reinvented. Journal of Business Ethics, 138, 525–533.
Waddams Price, C., Brazier, K., & Wang, W. (2012). Objective and subjective measures of fuel poverty. Energy Policy. https://doi.org/10.1016/j.enpol.2011.11.095
Wang, X., Stern, R., Limaye, D., Mostern, W., & Zhang, Y. (2013). Unlocking commercial financing for clean energy in East Asia. World Bank Publications.
Warner, M. E. (2013). Private finance for public goods: Social impact bonds. Journal of Economic Policy Reform, 16(4), 303–319.
Weber, O., & Remer, S. (Eds.). (2011). Social Banks and the future of sustainable finance (Vol. 64). Taylor & Francis.
Yigit, K., Kökkülünk, G., Parlak, A., & Karakaş, A. (2016). Energy cost assessment of shoreside power supply considering the smart grid concept: A case study for a bulk carrier ship. Maritime, Policy & Management, 43(4). https://doi.org/10.1080/03088839.2015.1129674
Yip, A. W., & Bocken, N. M. (2018). Sustainable business model archetypes for the banking industry. Journal of Cleaner Production, 174, 150–169.
Zhou, X., & Cui, Y. (2019). Green bonds, corporate performance, and corporate social responsibility. Sustainability, 11, 6881.
Zis, T., North, R. J., Angeloudis, P., Ochieng, W. Y., & Bell, M. G. H. (2014). Evaluation of cold ironing and speed reduction policies to reduce ship emissions near and at ports. Maritime Economics & Logistics, 16, 371–398. https://doi.org/10.1057/mel.2014.6
Zis, T. P. (2019). Prospects of cold ironing as an emissions reduction option. Transportation Research Part A, 119, 82–95. https://doi.org/10.1016/j.tra.2018.11.003
Author information
Authors and Affiliations
Contributions
Arnone, M.: introduction, methodology, elaboration parts on sustainable finance and green bond, conclusion.
Crovella, T.: introduction, methodology, elaboration part on maritime sector and cold ironing, final remarks, conclusion, revision, and formatting.
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Arnone, M., Crovella, T. (2023). The Role of Green Finance in Supporting Maritime Sustainable Development. In: Walker, T., Turtle, H.J., Kooli, M., Nikbakht, E. (eds) Fintech and Sustainability. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-40647-8_4
Download citation
DOI: https://doi.org/10.1007/978-3-031-40647-8_4
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-40646-1
Online ISBN: 978-3-031-40647-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)