FOSTERING GREEN FINANCE FOR SUSTAINABLE ECONOMIC GROWTH OF INDIAN INDUSTRIES

Abstract

Green growth refers to balanced green economic growth: two sides of sustainable growth should be maximized by the positive circulation of green and economy, which represents an economic growth pattern with the new driving force of "green", to obtain the new eco-friendly growth opportunity. The principle of green growth is to continuously improve manufacturing ability, reduce environmental pollution by using green technology and knowledge, and expand the use of green products. A fundamental task to achieve green growth is green funding. Green financing is also a corporate social responsibility (CSR) activity of financial firms such as banks, mutual fund companies, stock companies, and so forth (Koo 2010). Green environmental management has been regarded as a CSR activity that the firms should try to do something for society (Carroll 1979). This indicates that even though it is currently not profitable, financial institutions should work to promote green financing as a CSR initiative. Green financing seeks to simultaneously advance economic growth, environmental improvement, and the development of the finance sector. It is a form of targeted financing that encourages the flow of sufficient funds into the target through the intervention of public agencies in the market process because it is predicted that the market's autonomous mechanism will not provide sufficient funding for green economic activities. Furthermore, it supports green economic activity very favorably and discriminatorily restricts non-green economic activity, making it what is known as typically targeted finance (Noh 2010b: 10).