STUDY OF GREEN FINANCE ECOSYSTEM IN INDIA

Abstract

Green Finance is a new term but it is gaining importance with time. The reason behind its rising importance is because of rapid change in the climatic condition not just in one particular area but all over the world. The temperature of world is rising which is causing the ice around poles of earth to melt. The melted ice is raising the levels of sea. Along with that green house gases emitting from industries & plants is polluting the air, water & land. Chemicals & drain from these units is causing harm to local population. The harmful effect is not just felt by humans but animals have also became victim of that. Many species have been lost due to its & many more are on the verge of extinction. Green finance in this situation is promoting investments which are environment friendly. All those units which are producing harmful downstream components if their funding part is made costly the profit margin will be less & at the same time if the cost of capital for green projects is less as well as easily available investors will shift to investing in those projects. As they are making good profits as well as saving the environment Though Green finance seems to be a very noble idea there are many challenges to it. Otherwise it would have not been still in nascent stage. Fluctuating policies makes investors uncertain about the outcome of what he is investing so he refrains himself to get into such terrain. Although a lot has been done if we compare the situation from earlier times but still it is just the beginning.