Green Finance : A Study with Respect to Modern India

The Academic: International Journal of Multidisciplinary Research, 2024

Green finance, which involves financial investments in projects and initiatives that promote environmental sustainability, has gained traction globally as countries strive to address climate change and environmental degradation. India, being a developing economy with ambitious renewable energy and sustainability goals, faces unique challenges in implementing green finance at scale. This study explores the key challenges and opportunities in advancing green finance in India, including regulatory barriers, market infrastructure limitations, and a lack of awareness among financial institutions and investors. Notwithstanding these limitations, the report highlights considerable prospects for expansion in India's green finance industry, especially via governmental initiatives, the advancement of green bonds, and the growing involvement of the private sector in financing sustainable projects. This paper examines the legislative framework and market dynamics, emphasizing the potential of green financing to serve as a vital catalyst for India's transition to a low-carbon economy. Suggestions for addressing the identified difficulties encompass improving policy frameworks, encouraging private investment, and promoting increased collaboration between public and private sectors.

MuktShabdh, 2020

Finance and financial instruments are always evolving. New trends, instruments and financial models are always an essential part of this fast-changing economy. Green finance is the different range of financial products and services introduced to create an opportunity for all environmentally positive impact befalling projects. This is a wide concept which includes all financial instruments which are issued with the main motive of sustainability or promotion of clean energy and pollution reduction practices. This could be in the form of green bonds, green loans, green insurance etc. Countries have also developed their policies and instruments for supporting this venture. According to the United Nations Environment Programme (UNEP) report, China is waging far and well in the context of applying green finance and is bound by strong government regulations and policies. They have combined and taken a basket of best practices and formulated their policies and instruments. India, on the other hand, is at the developing stage in the context of green finance as compared to China but is at a better position in implication when compared to other countries. Therefore, a comparative study of these two countries would give the scope and suggestion for development in India concerning green finance. The main aim of this study is to compare the different policies and instruments of green finance in India and China, application and unique green practices adopted by the countries and providing suggestion based on the scope for improvement of green practices in both the countries, through an analysis of secondary literature. Adapting to new financial models and giving priority to green finance would help in strengthening the economy by reaching par above with other countries economically and financially.

Interscience Management Review, 2021

India is now in a situation where it has to accept the challenges from the international forum to improve its green infrastructure and attain its sustainable developments goals and climatic challenges like global warming, its huge population and huge green depletion. If the country has to survive it has to adopt Green finance. Green finance or climate finance is a component where it has to change it’s focus and behaviour from traditional form of financing to more environment friendly financing. It has to build a strategy through green finance to achieve its sustainable development goals. Indian and international financial agencies, corporates need to be encouraged to refocus on the aspect of green finance. There has been lot of promises and challenges in this front. This study is an effort to understand the situation where India stands and the go ahead as far as green finance and to manage its sustainable development goals. This study is of descriptive in nature and is based on seco...

FOREX Publication, 2024

The goal of our research is to identify significant characteristics of green finance and research gaps based on a thorough review of the literature. The content analysis approach is used in this study, which evaluates and summarises key past studies in the topic of green finance. This study evaluates existing research on green finance in the banking industry, with an emphasis on green financing and sustainable development. The period of study the is from August 2022 - January 2023. The sample for study includes 125 respondents. The outcomes of this study shed light on critical aspects of green finance. Green securities, green investments, climate financing, green insurance, green credit, green bonds, and green infrastructure are the key green finance products.

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.

Green finance is part of a broader occurrence; from the incorporation of various non-financial or ethical concerns onto the financial universe. Generally green finance is considered as the financial support for green growth which reduces greenhouse gas emissions and air pollutant emissions significantly. Green finance in agriculture, green buildings and other green projects should increase for the economic development of the country. In this paper an attempt has been made to describe green financing in a boarder sense.

IRJET, 2021

An This article concern highlighting the importance of Environment, Society and Governance in formation of a sustainable feasible country's economy with focus on climate change crisis issues and utilization of wisely valued resources in country's economy building preserving the ecology and significance of Green Financing and India's way ahead in decisive Green Financing measures implication; which all can reduce the Impact of climate change crisis making fit for economy grow smoothly benefiting majority of globe population.

International Journal Management Science and Humanities, 2020

Overview: With the evolving financial instruments and financial needs, innovative instruments and financial tools are always in need. Green finance helps in addressing the financial need for the issue of 'need for sustainable development' as put forward by the UN millennium goals. Purpose: The purpose of this paper is to pool all relevant literature concerning the concept of green finance, its implication around the world, initiatives taken by governments and the banking sector, understanding the adaptation of green finance through various case studies and giving an emphasis on Indian scenario for its scope and potential for developing green finance. Approach of the study: A complete search for all relevant literature from recognised and listed journals, UN newsletters and government official websites. Content analysis and word cloud also used as a part of qualitative analysis Findings: Green finance is found to be at an initial stage in most of the countries. Different financial products and agreements are introduced but it constitutes only 1 per cent of the world finance available. Various development institutions give stress to lending loans and assisting green finance projects. Of all the countries China has made the remarkable progress in the field of green finance. Being an upcoming source of finance green finance also faces various challenges in implementation, transition, availability to the common public etc.

Srinivas Publication, 2022

The social imperative of Green Financing is most for saving the future. This imperative assessment focuses mostly on a new and innovative financial concept that is green financing, which is now functioning as one of the most important strategies to attain economic stability together with overall sustainable growth. Design/Methodology/Approach: The research is descriptive in nature to analyze the future prospects of global financing in reference to Nepal. Literature based review dominated conceptual research is exploratory in nature. The key informants were consulted personally. On the basis of advantages, disadvantages, status, and actions required the professionals' opinions were documented using steps recommended by grounded theory. The Focus Group Discussion among professionals other than key informants was also done after collecting data personally on the same agendas for validation of research. It is furthermore illustrated with help of Ecotourism case analysis. It could be said partial ABCD based discussion and content analysis accumulated the research. Findings/Result: Globalization is having an increasingly negative impact on the environment, it is no longer an option for industries all over the globe to achieve overall green growth by adopting various green initiatives that allow them to achieve a climate-resilient future through both environmentalism and capitalism at the same time; rather, it is now a necessity rather than an option for them to do so. the function and relevance of green financing in not just one sector but for all other industries, which can embrace this concept in one way or another for the purpose of achieving total green growth has been illustrated. Despite the fact that green financing is currently a niche concept, the application finds to be highly beneficial. Originality/Value: Both relevant and practical aspects for future financing in the form of green financing have been recognized within a broader context to create an appeal and awareness on an academic platform.

2019

Sustainable development, is concerned with meeting the needs of present and future generations by protecting their interests fully and separately without effecting each other. It ultimately reflects the common belief that there is a single earth to live, no one can be deprived of. The term “Green Finance” has come into existence to complement Sustainable Development by taking care of economic benefits along with environmental benefits. This paper attempts to demonstrate the theoretical aspect of these basic components with a broad description of their areas and applications to make it easier for the readers to get an enhanced idea about them. Taking into consideration the necessity of Green Finance in Sustainable Development process, some recommendations are also provided that may help to achieve the goal more conveniently. Better theoretical concepts in this arena through this paper can motivate researchers to conduct diversified research from different perspectives and angles; in ...

MET's Institute of Management, 2017

Abstract Today due to technological advancement the global economy is threatened from three major challenges: namely climatic changes, energy crisis and financial constraints. As a result of human pressure on Earth’s resources, natural capital has declined. Increase in environmental Pollution, natural resource depletion and effects from global environmental issues compel large economic stresses and costs. In order to meet these challenges, new ecologically sustainable development strategies, that lead to economic growth and increased social equity while preserving the environment and responding to the rapidly increasing problems related to climate change, must be adopted. Hence, There is great need to support such Green Growth strategies that induce the required revolution process towards low-carbon and resource-efficient economies. A green financial system is the remedy for achieving harmony between the economy and the environment. One such sector is Green Banking. Green Banking means adopting environment friendly practices in banking sector and thereby reducing internal and external carbon footprints. It promotes green investments in renewable energy development projects which help in achieving sustainable economic growth for the nations. The present study primarily aims at exploring existing literature on the Green banking initiatives taken by the top leading private sector banks in India. Secondly, to know about the different green processes available in the Indian financial markets, and thirdly the future scope of green finance in India.

IJARCSMS, 2024

Through its positive effects on the environment, green finance is essential to promote inclusive, resilient, and cleaner economic growth. It facilitates the flow of funds toward sustainable development initiatives from the governmental, corporate, and nonprofit sectors. UN Environment has been striving to coordinate national financial systems to direct money flows towards achieving the 2030 Sustainable Development Goals, realizing the importance of green financing. To foster sustainable economic growth, India must also adopt a national green finance plan. By 2040, financing for green infrastructure would need to reach over $4.5 trillion. The involvement of banks and other entities from the public and private sectors will be essential to the financing of green projects. Therefore, the primary focus of this study is on the numerous green finance efforts implemented by Indian banks and organizations in the public and private sectors. The report outlines the several obstacles that India has when it comes to green financing and offers suggestions for how to overcome them. This descriptive analysis draws upon secondary data from a variety of official publications released by the Indian government as well as reports from Indian banks, public and private sector organisations, and other sources. The study also looks at impact investment, which allows investors to forego higher financial returns in exchange for non-financial advantages in the field of green finance. It emphasizes how important institutional ownership is in directing businesses towards improved social and environmental performance. Furthermore, sustainable finance depends on the inclusion of environmental, social, and governance (ESG) considerations in investment choices. The review addresses the relationship between risk management and climate change and emphasizes how environmental hazards affect financial decision-making. The article also examines the possibility of impact investment, in which investors accept lower financial returns in exchange for non-financial advantages in the field of green finance. The analysis addresses how environmental hazards affect financial decision-making and how they connect with climate change and risk management.

Imagine we, the people are in a queue in front of a retail shop, are to purchase a packet of fresh air. This imagination is not so far away to turn into a reality if the trend of environmental pollution is going on as it is in present. It was really amazing to us to see that a single bottle of British fresh air sold to Chinese buyers at $115. The Beijing authority announced red alert for several times to curb the city's notorious smog, a CNN report says in early of 2016. Beijing city government has issued a red alert for severely high levels of air pollution in the city for five days from December 17 to 21, 2016, as UK based newspaper The Independent says. Delhi's chief minister instructed to shut all schools in the Indian capital for three days as its citizen was struggling with choking smog in early November, 2016, as a BBC report says. Taking the environment pollution and climate change of the world into consideration what comes to our mind as the causes?-obviously first one is the concept of one-eyed way of development of the world. As we see, the main reasons of pollutions in our surroundings are – the road constructions are being ran using environment-unfriendly materials, thousands of motorized transportations are moving around which use fossil fuel and create a huge air and sound pollution, industries which create air pollution using natural fuel and emitting heavy black smoke and make water pollution through discharging industrial waste containing harmful chemicals in the rivers and water bodies, radioactive pollution due to malfunctions or improper disposal of the waste of nuclear plant, agricultural activities using pesticides and fertilizers which are made from harmful chemical substances, even making of residence for man destroying wildlife and forest, etc. Bangladesh, obviously, is not out of this list of environmentally polluted countries in the world. A World Bank's report says that Dhaka ranks highly amongst the world's major cities in terms of poor urban air quality. The report also says that county's two biggest polluters are brickfields and transport. Bricks kilns and motor vehicles contribute to 60% of fine particulate pollution in Dhaka during dry season. Rapid and unplanned industrialization is another major cause of pollution in Bangladesh. The worst example of water pollution may be the severe pollution of rivers around Dhaka city due to industries sprouted on the river bank. Chemical waste of tannery and dying factories of garments are thrown in the rivers turning these absolutely pollution. Oil spills of boats and different water vessel is also a reason for water pollution. The ship-breaking, a government declared emerging industry, is also becoming a source of threat for environment day by day through dumping explosive or inflammable gases in the coastal area particularly in Sitakundu, Chittagong. In Dhaka there are around 5,000 brick fields in operation, producing about 11 billion bricks per year. Brickfields in Bangladesh expel over 9.8 million tons of greenhouse gases into the air annually due to a combination of old technology, weak environmental legislation and enforcement and lack of corporate responsibility, WB study says. The most important fact is, to think, how long will we survive in the world making development without considering the environmental pollution? No, surely not forever. Then what can we do? Green finance concept can be a great avenue to reduce pollution and save the earth-the only place for man to live in aiding sustainable economic growth. Niklas Höhne and others, in 2012, defines green finance as a broad term that can be referred to financial investments flowing into sustainable development projects and initiatives, environmental products, and policies that encourage the development of a more sustainable economy. Green finance includes climate finance but is not limited to it. It also refers to a wider range of other environmental objectives, for example industrial pollution control, water sanitation, or biodiversity protection.

Shodh Sanchar Bulletin, 2020

Green Finance includes all initiatives taken by private and public banks, businesses and international organizations in developing, promoting, implementing and supporting projects with sustainable impacts through financial instruments. Green finance represents the future of financial sector through innovative financial mechanisms. This paper is written in a simple language to make everyone understand What is Green Finance? It concentrates on the evolution and concept of green finance, global impact and challenges and green finance during COVID-19. This is a Descriptive study carried only with secondary source of data. Finance is an Ocean and Green Finance is a little drop of an Ocean.