A Conceptual Study of Green Financing in Promoting Sustainable Development

Abstract

Green financing has been termed as a financial innovative tool that includes a wide range of financial products as well as services to promote sustainability. It particularly specifies social, environmental and government concerns. Sustainable development lays emphasis on the present needs without compromising about the future requirements. The present study aims to focus on understanding the concept of green financing as well as green financing instruments. It also aims to assess the importance of green financing in promoting sustainable development. The data has been collected from secondary sources including journals, articles, internet websites and published reports. Financial instruments basically includes green bonds, green banks, green investment funds that are majorly concerned in lessening pollution or greenhouse gas emissions and simultaneously concerned in improving the economy. Green financing has also been considered as an effective tool in promoting sustainable development as it focuses on maximisation of stakeholder’s value creation as well as environment sustainability itself has counted in supporting renewable energy sources.

Keywords: Green Financing, Sustainable Development, Financial Instruments, Environmental Concern