Green Finance And Sustainable Economic Development

Abstract

Green finance has emerged as an important instrument for achieving sustainable economic development by promoting environmentally responsible investments and reducing climate-related risks. The present study examines the role of green finance in supporting economic growth, renewable energy expansion, environmental sustainability, and carbon emission reduction. The study is based on secondary data collected from international organizations, government reports, climate finance databases, and research journals. The analysis reveals that global climate finance increased from approximately USD 612 billion in 2018 to nearly USD 1370 billion in 2024, while global green bond issuance reached around USD 700 billion in 2024. In India, renewable energy investment increased from USD 11 billion in 2018 to nearly USD 26 billion in 2024, generating around 5 million green jobs. The study concludes that green finance significantly contributes to sustainable development through renewable energy growth, employment generation, climate mitigation, and sustainable infrastructure development despite challenges such as financing gaps and regulatory limitations.