EXPLORING THE SELECTION CRITERIA WHILE FINANCING THE GREEN PROJECTS FOR SUSTAINABILITY: AN EMPIRICAL STUDY
Keywords:
Green project, sustainability, finance, selection, criteria,,Abstract
The global economy now faces three significant challenges: climate change, energy limitations,
and financial instability. Economic growth at the expense of environmental health has led many
nations to compromise their wealth. Green finance emerges as a critical solution to balance
economic development with environmental sustainability, providing funding aimed at fostering
sustainable progress and significantly reducing “greenhouse gas emissions and air pollution.”
This study examines the importance of establishing criteria for financing green projects. As
environmental accountability gains momentum, financial institutions and investors are
increasingly integrating “environmental, social, and governance factors alongside traditional
financial metrics in their investment strategies.” The growing emphasis on sustainability has
heightened the demand for green financing, prompting financial entities to create specific
selection standards for supporting eco-friendly initiatives. Through an empirical analysis of
case studies and financial documentation, this research highlights the key criteria valued by
financial bodies when assessing green projects. Major factors include environmental impact,
adherence to international sustainability standards, economic viability, and technological
innovation. Study survey was conducted among 203 people from financing institutes to know
the selection criteria while financing the green projects for sustainability and the impact of
financing green projects on sustainability and concludes that there is significant impact of
financing green projects on sustainability.
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