GREEN FINANCE FOR CIRCULARITY TO ACHIEVE SUSTAINABILITY

Abstract

Population explosion and over exploitation and exploration of limited natural resources with overuse violating the recommending protocols of the concept of reduce, reuse and recycle without caring for the consequences has created a growing attention from governments and regulators towards crucial matters such as climate change and global warming. The situation is alarming and giving a wakeup call resulting in an urgent and pressing need to investigate the factors that make it possible for businesses to engage in green finance (GF). The situation and condition of environmental pollution is very pathetic in certain cities worldwide and prioritizes the need of green innovation in public management. Green finance has emerged as a very important source in order to achieve sustainability by channelizing and harnessing financial resources towards environment friendly projects by making green innovations (GI). GF and GI complement each other as one provides financial resources to the research and development (R-D) to produce other for clean and green energy and environmentally friendly products for environmental protection. The policies prepared and the recommendations made in regard to GF help to alleviate the influences of financial constraints and GI based industries and organisations that involve in manufacturing new produces and products, processes, services and overall, the global market. Circular economy principles, which emphasize reducing waste and reusing resources, align closely with the goals of sustainable development. The concept of green finance encompasses financial instruments, investments, and initiatives aimed at promoting environmentally sustainable development. The recommendations of SDGs by UN and their subsequent adoption in 2015 provided a global framework for addressing pressing challenges such as climate change, environmental degradation, and social inequality. This article explores the role of green finance in advancing circularity and achieving sustainability objectives. It examines various financial mechanisms and instruments that support circular economy initiatives, highlighting successful case studies and identifying challenges. Green finance has been a key enabler for achieving the SDGs, emphasizing its potential to mobilize capital towards sustainable and inclusive growth. The article concludes with policy recommendations and future directions for leveraging green finance to foster a circular economy and ensure long-term environmental sustainability.