Sustainable development is a key concept in environment jurisprudence that has aimed at harmonising economic development and environment protection. To combat the imminent threats of climate change various summits and conferences have based their plan of action on the lines of sustainable development. The 2030 Sustainable Development Goals (SDGs) are a unique set of seventeen-time bound goals that aim to balance all three objectives of sustainability i.e., economic, social and environment. Sustainability has emerged as a driving force for all sectors of the economy. The financial sector especially has been under the lens to contribute towards environment sustainability. In this backdrop 'green finance' has become a hot topic among corporates globally. Green finance means to include all public and private entities which provide financial assistance for sustainable development initiatives. A few of these initiatives include climate change, renewable energy, environmental pollution, deforestation and carbon neutrality. However, the context in which green finance is applicable depends on the economy of respective nations. Developed nations have the requisite economic resources to finance sustainability driven initiatives whereas developing countries face numerous challenges in financing their national goals. The Association of Southeast Asian Nation demand for green finance is estimated to hit three trillion US dollar in 20301. Back in 2009 at the UN Climate Summit held in Copenhagen, developed countries committed to aid hundred billion US dollar by 2020 for adapting and mitigating efforts in climate change. But the goal has not been achieved2. The need for developed countries to financially aid developing nations was reiterated at CoP 26. In this article we will discuss how a developing nation like India is taking a step closer towards green finance.
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