Green Finance: A Study about Green Banking in India
Author : Dr. Fiona Sheenu Francis and Anil Kumar M
Abstract :
The credo “Go Green” has gained currency in today’s eco-friendly society and is now germane to all facets of the business. Any financing that contemplates the environmental effect and intensifies ecological sustainability can be used to depict green finance. Green finance, which is defined as the financial backing provided for projects that deal with environmental protection, vindicating the consequences of climate change, investing in renewable sources of energy, intensifying the green cover, and all other ventures related to sustainable development, is a deft pursuit emerging as a priority for public policy. The banking sector is not considered polluting but impacts the environment by raising energy consumption such as lighting, air conditioning and paper consumption. Sustainable green banking, where decisions about lending and investing are made based on environmental screening and risk assessment to fulfil sustainability criteria and insurance services that cover environmental risk, are significant constituents of green finance. In-house and outdoor carbon footprints can be dwindled by ensuring ecologically friendly procedures and green lending. This study reviews green banking literature and pinpoints application challenges. The research shows that the dearth of knowledge and tutelage is a significant barrier.The credo “Go Green” has gained currency in today’s eco-friendly society and is now germane to all facets of the business. Any financing that contemplates the environmental effect and intensifies ecological sustainability can be used to depict green finance. Green finance, which is defined as the financial backing provided for projects that deal with environmental protection, vindicating the consequences of climate change, investing in renewable sources of energy, intensifying the green cover, and all other ventures related to sustainable development, is a deft pursuit emerging as a priority for public policy. The banking sector is not considered polluting but impacts the environment by raising energy consumption such as lighting, air conditioning and paper consumption. Sustainable green banking, where decisions about lending and investing are made based on environmental screening and risk assessment to fulfil sustainability criteria and insurance services that cover environmental risk, are significant constituents of green finance. In-house and outdoor carbon footprints can be dwindled by ensuring ecologically friendly procedures and green lending. This study reviews green banking literature and pinpoints application challenges. The research shows that the dearth of knowledge and tutelage is a significant barrier.
Keywords :
Financial investments, environment, corporate social responsibility, banking sector
