Author(s) :   Preeti Panse¹, Dr. Dinesh Kumar Sharma²

Abstract : The promotion of green finance has become essential for achieving sustainable development, yet financial institutions continue to face significant challenges in its implementation. This study investigates the barriers to green finance adoption in Haryana, India, by employing an explorative-cum-descriptive research design. Primary data were collected from 180 professionals working in commercial banks, non-banking financial companies (NBFCs), cooperative banks, and investment firms through a structured questionnaire. Exploratory factor analysis (EFA) was applied to identify the key dimensions of challenges. The findings revealed five critical components: regulatory and market challenges, inadequate frameworks for project evaluation, market barriers, risk factors in green finance, and lack of investor awareness. These factors collectively explain 76.93% of the total variance, highlighting the multidimensional nature of barriers faced by financial institutions. The study underscores the need for stronger regulatory clarity, innovative financial products, robust risk management frameworks, and capacity-building measures to enhance institutional readiness. By addressing these challenges, financial institutions can play a more effective role in channeling resources toward environmentally sustainable initiatives.

Keywords: Green finance, financial institutions, regulatory challenges, market barriers, risk factors, investor awareness, sustainable development etc.

DOI: 10.61161/ijarcsms.v13i9.3

Pages : 21-27

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