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Research Article

EEO. 2021; 20(5): 8778-8785


Factors Determining The Implementation And Success Of Green Finance: A Descriptive Study

Abhishek Sharma.




Abstract

As a strategy for addressing environmental issues and advancing sustainable economic development, green finance has drawn a lot of attention. Several important aspects play a role in how green financing is implemented. First off, legislative and regulatory frameworks are very important in determining how green finance ideas are developed and adopted. To promote the inclusion of environmental issues in financial decision-making, governments all over the world have implemented a variety of measures, including tax incentives, subsidies, and required reporting requirements. Second, market demand and investor preferences also have an impact on how green finance is implemented. Investors are realizing more and more how important environmental, social, and governance (ESG) factors are when making investment choices. A burgeoning market for green financial goods and services, such as green bonds, green loans, and sustainable investment funds, has resulted from this. Thirdly, for the successful application of green financing, environmental data, and information must be accessible and of high quality. For successful risk assessment and investment decision-making, robust and standardized criteria for monitoring and reporting environmental consequences are required. Additionally, for green finance to be successful, cooperation and engagement from a variety of stakeholders, including financial institutions, businesses, civil society organizations, and governments, are essential. To fully utilize green finance in promoting sustainable economic growth and tackling environmental issues, it is imperative to overcome these obstacles.

Key words: Green Bonds, Sustainable Investing, Carbon Footprint, Circular Economy, Climate Resilience.






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