A Review of Green Finance: Tool for Sustainability

Asia-Pacific Financial Markets, 2022

International Journal of Green Economics, 2022

This paper reviews the existing research on green finance. It identifies the important themes in the green finance literature, particularly, the strategies to increase green financing; efforts to make green investment profitable; promoting green financing using technology and policy, the role of regulators and financial institutions in the green finance agenda, and the challenges of green financing. Several crosscountry observations about the challenges of green finance and solutions to green finance issues are documented. The findings show that green finance has the potential to make a significant difference in the environment, society and for climate change mitigation, but many challenges abound such as the lack of awareness about green finance, inconsistent definitions of green finance, lack of policy coordination for green financing, inconsistent policies, and lack of profitable incentives to investors and financial institutions who are willing to invest in climate change mitigation.

This study examines green finance from a theoretical perspective in order to examine its importance in the fields of sustainable development and environmental conservation. Along with the prospect of it, there is an outline of the concepts, procedures, products, and services of green finance. The evolution of market mechanisms and the creation of policies were given careful study in this research through the explanation of important drivers for decision-makers. Environmentalists and educators emphasis the financial ideas that support environmental conservation and guarantee sustainable growth in this context. Excessive use of natural resources, poisonous and dangerous gas and material emissions, and deteriorating environmental conditions are only a few of the significant causes that have pushed human thought towards sustainable development. In addition, there is a financing for projects that can be detrimental to sustainability must be reduced. Worldwide attention has been given to environmental problems and sustainability, and as a result, world leaders have reached an agreement on these issues. In order to go further, financial development has been a key determining element, and this decision must take into account global environmental challenges. In the context of green finance, an effort is made to eliminate conflicts between corporate objectives and environmental concerns. A number of initiatives are put forth primarily for the successful fulfilment of ecological balancing and green finance goals.

2023

Environmental nance and green banking are central drivers of the transition to a sustainable economy and essential components in solutions to climate change. This book presents the latest research on theory and practices in these interdisciplinary elds, incorporating both public and corporate nance. It introduces three parts-environmental investing and nancing, green banking and environmental policies in the public sector. The book explores the current trends, dynamics and ways forward for environmental nance and green banking, including fundamental theories (e.g., environmental Kuznets curve) and comparisons between traditional and green bond e ciency, corporate governance practices and disclosure, green central banking, climate nance, sustainable strategies, green Islamic banking, and public climate fund management in multi-country contexts. The contributors to this book highlight signi cant challenges ahead while recognizing potential opportunities, such as the revolution in green investments and trading in green bonds. This book is a welcome addition to the literature on environmental economics and nance and the economics of sustainability and climate change.

The present era of globalization has brought lot of luxury to human life but has also resulted inenvironmental degradation incorporated with all the involved activities. Today the entire economy is facing huge challenge to deal with the environmental problems and their related impacts in their day to day businesses. Today's era is threatened from the major challenges of climate change, energy constraints and financial crisis. Due to all these reasons, business organizations have started modifying their activities and strategies so as to ensure protection to our natural resources and environment. If we have to give cleaner & greener environment to our future generations, this is the time economies across the globe should take immediate preventive measures. In this context the financial sector can play an important role in promoting environmental sustainability. Sustainability is one of the most important factors driving the strategy making process of the business fraternity. In financial sector, various services that have adopted green business are banks, stock brokerage companies, credit card companies and also the companies involved in consumer finance. The concern for environmental sustainability has given mass recognition to the concept of corporate social responsibility.

IAEME PUBLICATION, 2020

Green finance refers to the environment-friendly investment and projects that address sustainability. Presently, excessive use of technology has put a severe challenge for the economy throughout the world. Today, economies are facing two significant problems: environmental impacts and money urgency. So, it needs financing to address the two alarming challenges which otherwise can go from bad to worse. Keeping this in mind, green finance is considered as the solution to environmental degradation. Green finance is also connecting nature with the economy, and it widely addresses ecological development and sustainability. That's why most of the companies have named their stocks as green bonds or green sukuks (it is the name of the stock in Islamic and Ethical Finance, Sukuk is a bond but invested under some defined principles) in ethical finance. It further promotes green activities through monetary improvement. Moreover, ethical finance refers to the investment that is based on specific values and principles. There is a deep relation between green finance and ethical finance; their pinpoint is the same, for example, both support the responsible investment-additionally, this paper endeavours to find out the literature related to green investment and ethical finance.

International Journal of Advanced Research in Science, Communication and Technology, 2024

In the modern world the ever increasing adverse climate changes has been a great concern for the governments of the various countries of the world which has caused them and various other organisations to specifically concentrate on reducing the greenhouse gas emissions . Green Finance goes on to play an important role in promoting or financing those type of industries which are energy efficient and also has low carbon emissions which in turn can go on to develop the green economy of a country . Therefore Green Finance can be described as those type of financial activities or services which are created and implemented to ensure a better environmental surroundings by financing in those types of projects which deals with industrial pollution control , biodiversity protection , energy efficiency , renewable energy , etc , etc . In this paper we have tried to study the importance of introducing various green financing methods , techniques and mechanisms among various countries of the modern world with a reference to modern day India and the data needed for such research work has been basically collected through both primary and various other secondary methods of collections .

JOURNAL OF CRITICAL REVIEWS, 2024

In an era defined by escalating environmental degradation, social inequalities, and corporate governance failures, the imperative for sustainable finance and environmental, social, and governance (ESG) investing has attained unprecedented significance. The global community's mounting concerns regarding climate change and social responsibility underscore the urgency for financial institutions, particularly banks, to re-evaluate their traditional approaches to decision-making. This study delves into the pivotal question of how banks can navigate the evolving landscape of sustainable finance, integrating ESG criteria into their core decision-making processes, pioneering the development of sustainable financial products, and effectively assessing environmental risks within their lending portfolios. Against a backdrop of heightened awareness surrounding the interconnectedness between financial performance and broader societal and environmental impacts, this investigation seeks to illuminate pathways for banks to align their operations with sustainability imperatives while simultaneously enhancing their resilience to emerging risks and opportunities.

Journal of Reviews on Global Economics, 2018

Nowadays the largest institutional investors and exchange-traded funds invest a great part of their portfolio in the assets connected with environmental-friendly activities. "Green" financial instruments can accumulate resources for climate change adaptation and infrastructure projects in areas such as renewable energy generation, energy effectiveness, clean water, low-carbon transport, etc. Thus, the concept of sustainable development not only pay attention to the climate risks but also creates new factor of investment attractiveness and makes the investment process more conscious and less speculative. Governments are also interested in the development of "green" instruments as their can play a significant role in the adaptation to the climate change and movement of the capital flows from the financial sector into the ecological industrial projects. The study shows that the necessary funds can be accumulated successfully due to defensive character of "green" instruments and their sustainability to the market shocks.

Energy RESEARCH LETTERS, 2021

In this study, we examine the role of green finance in achieving a sustainable environment for 11 of the top countries in terms of investment in environmental protection from 2006 to 2017. By applying panel-corrected standard errors and the feasible generalized least squares model, we find that green finance is associated with an improvement in environmental sustainability. However, energy consumption and urbanization have an adverse effect on environmental sustainability.