Green Finance—The Environment Friendly Finance

As per Inter Governmental Panel on Climate Change (IPCC) report global atmospheric concentrations of carbon dioxide, methane, and nitrous oxide have increased markedly as a result of human activities. Thus, emissions will continue to contribute to warming and sea level rise for more than a millennium. Increasing global temperature will cause sea level to rise, and is expected to increase the intensity of extreme weather events and to change the amount of precipitation. Such a threat to the Earth and its inhabitants is a matter of concern for every human being. Thus, attempt is required to be made by everyone to contribute towards the sustainability of inhabitable environment for years to come. So, in this respect the concept of green finance has emerged. It is a loan or investment that promotes environmentally positive activities such as the purchase of ecologically-friendly goods and services or the construction of green infrastructure. Green financing is to increase level of financial flows from banking, micro-credit, insurance and investment sectors to sustainable development priorities. A key part of this is to better manage environmental and social risks, take up opportunities that bring both a decent rate of return and environmental benefit and deliver greater accountability.