Green Finance and Sustainable Investment: Navigating the Landscape in India
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Abstract
The role of finance in fostering sustainable development has gained paramount importance as the global community grapples with the challenges posed by climate change and environmental degradation. This paper provides an overview of the landscape of green finance and sustainable investment in India, a country facing unique environmental, social, and economic considerations. It delves into the evolving ecosystem of green finance in India, exploring the regulatory frameworks, financial instruments, and emerging trends that shape the landscape. The paper also examines the initiatives taken by the Indian government, regulatory bodies, and financial institutions to promote environmentally responsible practices and investments. Additionally, it assesses the challenges hindering the widespread adoption of green finance and sustainable investment in India, such as policy uncertainties, information gaps, and market dynamics.
The review features the developing mindfulness among financial backers, investors, businesses, and policymakers about the significance of integrating environmental, social and governance (ESG) factors . It sheds light on the role of technology and innovation in catalysing sustainable finance solutions, showcasing examples of successful green projects and initiatives across various sectors in India. Furthermore, the abstract outlines the potential benefits of embracing green finance, including mitigating climate risks, enhancing resilience, and contributing to India's commitments under international sustainability agreements. It also discusses the economic and social implications of sustainable investments, emphasizing the potential for job creation, community development, and inclusive growth.
It focuses on the importance of collaborative efforts among government, financial institutions, businesses, and civil society to overcome challenges and unlock the full potential of sustainable finance for a greener and more resilient future in India.