Green Finance: Concepts, Theories, and Implications for Sustainable Development
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Abstract
This study aims to bridge the gaps and examine the evolving impacts of economic development by analyzing the significance of a collective understanding among policymakers, stakeholders, shareholders, academics, and students regarding the critical role of Green Finance. It emphasizes its conceptual and theoretical frameworks and its integral implications for sustainable economic development—an aspect that consistently needs promotion, integration, and institutionalization across all initiatives and planning activities. Employing a descriptive and comparative qualitative approach, the research utilizes secondary data sourced from published reports, journals, research articles, and reputable websites. The dataset spans a time frame between 2020 and 2025. Through comprehensive analysis, the study identifies pertinent findings and global perspectives on policy solutions, highlighting emerging trends, common challenges, and best practices across various countries in Europe and Asia. This enables the development of fresh insights and paradigms regarding Green Finance's importance on conceptual, theoretical, and practical levels in fostering sustainable economic development. Green Finance operates within six environmental objectives: mitigating climate change, adapting to climate change effects, ensuring sustainable use and protection of water and marine resources, transitioning to a circular economy, reducing pollution, and protecting/restoring biodiversity and ecosystems. The related concepts—sustainable finance, climate finance, and low-carbon finance—revolve around effectively channeling financial resources toward projects that offer measurable environmental benefits. Such projects must align with environmental goals like climate change mitigation, adaption strategies, and broader ecological improvements.
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