Page 10 - Green Finance 2024

Looking ahead, the future of green finance is likely to be shaped by ongoing

developments in policy, technology, and market dynamics. The integration of digital

technologies like blockchain and artificial intelligence in green finance could enhance
transparency and efficiency. Furthermore, the increasing focus on ‘just transition’

finance, which seeks to ensure that the transition to a low-carbon economy is fair and

inclusive, is likely to gain more attention.

To sum up, green finance has evolved from a niche concept to a key component of the

global financial system. Its development reflects a growing recognition of the critical

role that finance plays in addressing environmental challenges. As the world continues

to grapple with issues like climate change and resource depletion, the importance of

green finance in driving sustainable economic growth is likely to increase further.

In this study, with the target of evaluating the role of green finance in higher education,

we introduce the concept of green finance to the respondents with all its instruments and

mainly focus on the impact of green finance on environment.

1.2. Instruments of green finance

Green finance instruments are pivotal in channeling capital towards sustainable

development and climate goals. These instruments, ranging from green bonds to

sustainability-linked loans, provide a mechanism for investors to support environmental
projects while potentially securing financial returns. This section explores various green

finance instruments, their development, challenges, and prospects.

Green Bonds

Green bonds are among the most prominent green finance instruments. They are

designed to raise capital specifically for projects with environmental benefits, such as

renewable energy, energy efficiency, sustainable waste management, and biodiversity

conservation. The first green bond was issued by the European Investment Bank in 2007,

marking a significant milestone in the development of green finance (Flaherty et al.,
2017). Green bonds generally follow the Green Bond Principles (GBP), voluntary

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