Carbon-intensive industries like steel cause climate change. Corporate carbon reduction is needed to fight climate change. This enormous project requires green funds. Circular, energy-efficient, and climate-friendly funding. Modern projects' green financial pros and cons are discussed here. Despite its obstacles, this report explores India's green finance potential. Climate change surprises affect finances, time, and frequency. Despite obstacles, worldwide initiatives like the Financial Stability Board's four building blocks—disclosures, data, vulnerability assessments, and regulatory practices—are strengthening the financial system. Strong frameworks need similar disclosures to enhance decision-making. This argument concerns ISB and Climate-related Financial Disclosures Task Force. The SEC and RBI improved stock exchange-listed firm transparency. In India, “green deposits,” ESG funds, and internal carbon pricing show green finance's potential. PPP maintains investment. Control and adapt to changing situations. India's economic and environmental interests drive green financing.
TopIntroduction
Due to the escalating environmental concerns, the 21st century's shifting global environment calls for sustainable development. Globally, the rising emissions of GHGs (greenhouse gases) and air pollutants are posing grave problems. It is essential to use clean and renewable energy sources because of global warming. Green Finance is therefore essential for both business and environmental science. Green finance has become essential because sustainable growth (Satpathy et al., 2024) needs financing.
The G20 Summit's Green Finance Synthesis Report defines green finance as financing investments that improve the environment. Due to its integration in the financial sector (Bhavya et al., 2023), the environment and economic growth, green finance being a crucial component of low-carbon green growth. Green finances are to increase investment returns on green projects, draw capital to them, and deter polluting investments. This research explains green financial and energy sources and evaluates their effects and parameters, such as new transformative instruments of green financing for renewable and clean energy projects like solar power, solar rooftop financing, wind power, biomass power generation, hydroelectric, and other renewable sources. Quantifying growth and following its dissemination to weaker areas of society reveals for identification and evaluation.
In many of its internal regulatory schemes, such as SEBI's 2021 adoption of Business Responsibility and Sustainability Reporting (BRSR), India has demonstrated promise and capability to take considerable initiative in combatting climate change and reaching the UN's Sustainable Development Goals (SDGs). The sustainability reporting format is based on the nine principles of the National Guidelines for Responsibilities. With programs like “green deposits,” “ESG funds,” and internal carbon pricing gaining traction, India's future in green finance is extremely promising. Standardization and transparency will be important in defining the changing landscape, and collaboration between the public and private sectors is essential to promote sustainable investment practices. Green finance is a potent change agent as India strives to strike a balance between economic growth and environmental sustainability.
Understanding Green Finance
Green finance promotes a sustainable, resilient economy (Manoharan et al., 2022) that can adapt to climate change and move toward a low-carbon society. It encompasses various initiatives aimed at promoting environmental sustainability and aligning financial activities with long-term ecological goals. Notable examples of green finance initiatives encompass:
Supporting projects and technologies that harness renewable energy sources and enhance energy efficiency to reduce carbon emissions.
Backing endeavors that mitigate pollution, safeguard environmental quality, and promote cleaner industrial processes.
Financing efforts dedicated to the preservation and restoration of biodiversity, thereby protecting ecosystems and wildlife.
Encouraging business (Ponduri et al., 2024) practices that reduce waste and encourage resource recycling and reuse to lessen their impact on the environment.