Green Finance: Fostering Sustainable Development in India

Abstract

Green finance plays a pivotal role in achieving inclusive, resilient and cleaner economic growth by creating environmental benefits. It helps in increasing the flow of finance from the public, private and nonprofit sectors to sustainable development priorities. Recognising the significance of green finance, UN Environment has been working in the alignment of the financial system of the countries to channelize the financial flows for attaining 2030 sustainable development goals. To build economic development in a sustainable manner, India also needs a national green finance strategy. It requires green infrastructure funding of about $4.5 trillion by 2040. The contribution made by both public and private sector organisations/banks will play a crucial role in green financing. The present study therefore mainly explores the various green financing initiatives taken by the public and private sector organisations/banks in India. The study showcases the various challenges in the area of green financing in India and also recommends measures to face those challenges. The study is descriptive in nature and is based on secondary data taken from various government reports published by the Government of India and other published reports of public and private sector organisations and banks in India.