Challenges of implementing green finance initiatives in India: A quantitative investigation

Abstract

As the world faces severe issues of environment degradation, pollution and climatic concerns, development and implementation of sustainable financial practices is a prerequisite for environment protection and resource conservation. The incorporation of environmental considerations into financing that marks the foundation idea of green financing facilitates towards fostering a financial environment of resilience, growth and sustainability. However, the implementation of various green initiatives in India often faces several challenges in terms of diverse social, economic and environment barriers. India being a diverse landscape, with a complex interplay of various social and economic aspects prioritizes infrastructure development and poverty alleviation at the macroeconomic level compared to investments in development projects that integrate environmental considerations. Moreover, lack of awareness regarding green instruments, perceptions and behaviour of investors, regulatory gaps, policy inconsistencies, lack of standardized metrics as well as limitations in understanding and evaluating environmental outcomes of green finance initiatives also do impact the growth and success of such initiatives in India. By understanding the research gaps and challenges that persist in this arena will help to develop ways that help tackle the problems which negatively impact effective implementation of these initiatives and also help build a financial and regulatory framework that works towards sustainable environment. The researcher had conducted the study survey with the help of a questionnaire on 108 environmentalists to know the challenges and impact of implementing green finance initiatives in India. The study concludes that there is significant impact of different challenges on implementation of green finance initiatives in India.