Author(s) :   Kamal Preet Kaur

Abstract : 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.

Keywords: Green Finance, Sustainable Development, Green Initiatives, Green Investments, Environmental Performance.

DOI : 10.61161/ijarcsms.v12i3.1

Pages : 01-12

*Authors are invited to submit papers through E-mail at editor.ijarcsms@gmail.com