Authors:- Mr. Gourav Kamboj

Abstract- The term “green finance” describes financial agreements designed specifically to be used for initiatives that address the effects of climate change on the environment or that embrace sustainable practices. The goal is to increase the amount of money flowing to sustainable development initiatives from the public, private, and not-for-profit sectors through banking, microcredit, insurance, and investment. The United Nations Environment Program (UNEP) has been collaborating with various nations, financial regulators, and the finance sector to align financial systems with the 2030 Sustainable Development Agenda in order to steer financial flows to support the achievement of the Sustainable Development Goals. A wide range of financial services and products fall under the umbrella of “green finance,” which can be broadly classified into banking, investing, and insurance products. Examples of these include green bonds, climate risk insurance, green investment funds, and green-tagged loans. It is advised to launch a sustainable stock exchange program to create stock price indices that monitor a group of companies’ stock performance in accordance with environmental, social, and governance (ESG) principles. Around the world, there are four different regulatory frameworks. The first is the disclosure of sustainability by financial and non-financial enterprises; the second is directed and concessional lending; the third is the formation of green financial institutions; and the fourth is the micro- and macro-prudential regulations of financial and non-financial institutions. India began focusing on green finance in 2007 and implemented a number of financial and fiscal incentives. “Corporate Social Responsibility, Sustainable Development, and Nonfinancial for Banks” was the name given by the RBI to the project. The National Action Plan on Climate Change (NAPCC) was created in 2008 with the goal of outlining a comprehensive framework for policy in order to mitigate the effects of climate change. Other initiatives, such as “The Climate Change Finance Unit,” were created in 2011. India set a very ambitious goal in 2019: by 2030, it wanted to generate 450 GW of renewable energy.