Green Finance: Practices done by financial institutions to

reduce carbon intensity.

By Sukurulla Shaikh
Sukurullashaikhmarvel1@gmail.com, MBA 2ND Semester

Abstract: In the past ten years, the concepts of sustainable development and sustainable
economy have become more widely debated on a global scale, bringing together governments
and international and national institutions/organizations in collaborative endeavors for the
preservation of the environment. Global spending on renewable energy and energy efficiency
decreased by 3% in 2017 (Hill, 2017), and there is a chance that they will continue to fall.
Without a doubt, fossil fuels continue to dominate energy investments. This could jeopardize
the growth of green energy required to achieve energy security, climate change, and clean air
goals. Financial institutions are becoming more aware of the importance of adopting
sustainable practices and reducing carbon intensity. These institutions considerably aid in the
worldwide fight against climate change by incorporating Environmental, Social, and
Governance factors into investment choices, streamlining internal processes, and involving
stakeholders. However, ongoing cooperation between financial institutions, governments,
regulators, and civil society is crucial to achieving a unified and successful approach to
reducing carbon intensity. The contribution of financial institutions to lowering carbon
intensity has drawn a lot of attention as worries about environmental sustainability and climate
change grow. In order to reduce their carbon footprint, financial institutions have embraced a
variety of green practices. This study tries to give an overview of Green Financing. This study
explores the various tactics and investment instruments used by these institutions to align their
operations with environmentally responsible practices through an examination of the body of
literature.

Keywords: Green finance, Investment, financial institutions, Carbon intensity,Financial

Instruments