Green Finance and ESG Outcomes in Papua New Guinea and the Pacific Islands
DOI:
https://doi.org/10.64391/ijssat.v2i1.003Keywords:
green finance, ESG, Papua New Guinea, pacific islands, sustainable development, blended financeAbstract
The literature review answers the following research question: How do green finance mechanisms translate into Environmental, Social, and Governance (ESG) outcomes in Papua New Guinea and the Pacific Islands? Scientific research is conducted through a systematic literature review of peer-reviewed articles and institutional reports published between 2018 and 2025, with references to databases such as Google Scholar, ScienceDirect, ESCAP, IMF, and OECD repositories. Thematic analysis was conducted to identify patterns in how financial instruments such as green bonds, sustainability-linked loans, and debt-for-nature swaps impact the ESG dimensions. Significant results suggest that world systems establish theoretical links between green finance and ESG. However, the quality of governance, interaction with communities, and mediation of context are essential for applying the concepts to the local context. Governance failures are the primary circuit breaker in the finance-ESG mechanism, likely distorting the benefits of the intended changes. The review also finds that community-owned structures should replace consultation and that Pacific natural capital is a strategic opportunity for blue and nature-based finance. The paper contributes by unpacking the mechanistic channels and contextual conditions that shape green finance effectiveness, and for providing an integrated framework of stakeholders to achieve sustainable and ethical development in Pacific Island Developing States.
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Copyright (c) 2026 The Author(s). Published by the Colorado Social Science Research Academy, Denver, Colorado, USA.
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