Green Finance: A Catalyst for Sustainable Development Goal

Abstract

An unparalleled shift in investment from businesses that heavily rely on fossil fuels, greenhouse gases and natural resources to those that use more resource-efficient technology and business models is necessary to put the economies of Asia on a sustainable development path. In this via green transformation the financial industry can take the lead. Massive pollution, deteriorating environmental conditions and declining natural resource availability all pose health risks to the general public and hinder sustainable economic growth. Countries all over the world are concentrating more on employing environmentally friendly technologies in order to preserve and greatly enhance the environment. A new idea in the finance industry is green finance. Policy priorities are rapidly shifting to include green financing. This article provides an overview of the global and Indian advancements in green financing and aims to investigate the significance of green finance in the context of sustainable development and environmental conservation. The creation of market mechanisms and the design of policies through important drivers that are described to policymakers were given significant consideration in this article. This study uses secondary data to examine government initiatives, constraints and the demand for green finance. It examines the current status of green finance and investment in Asia and gives a broad picture of the region efforts in green financial governance. Along with highlighting financial policy priorities and obstacles to green investments, it also identifies market solutions to boost green financing in Asia. This research focused mostly on how market mechanisms arise and how policies are formulated through important drivers that are articulated to policymakers. Within the framework of green finance, an effort is made to eliminate inconsistencies between environmental concerns and corporate goals. To effectively achieve ecological balance and the goals of green finance, a number of strategies are essentially suggested.

Keywords: Green Finance, Green Finance Mechanism, Sustainable Development, Policy, Manufacturing, Asia, Challenges

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