Abstract:
Concept of green finance can be regarded as innovative in the
field of Finance. The term describes a broad range of funding for
environment-oriented technologies, projects, industries or
businesses. The principal objective of this paper is to study what
green finance is all about and would verify if this concept is
feasible in India for balancing the ecological depreciation due to
adjustment of carbon gases in atmosphere. Green finance is a
core part of low carbon green growth because it connects the
financial industry, environmental improvement and economic
growth and all these are essential for country like India to sustain
in the long run. Along with this green growth is an economic
growth paradigm that simultaneously pursues growth and
improvement of environment by driving growth and job creation
through R&D in clean energy and green technology, conserving
and efficiently using energy and resources and mitigating climate
change and environmental degradation. Green Finance is market
based investing or lending program that factors environmental
impact into risk assessment, or utilizes environmental incentives
to drive business decisions. In general, three broad, related
drivers and trends are behind the emergence and growth in
“green” product and service demand, they are, environmental
knowledge and media coverage; environmental awareness and
public opinion; and environmental regulation and legislation
which needs to be duly taken care off. Through this paper , the
authors have triad to explain the concept with detailed exposure to
Indian framework. In India, SIDBI has taken various initiatives to
promote lending for green and efficient technologies in MSME
sector.
