Green Finance and Sustainable Development: The Role of Green Investment

Authors

Anastasia Savitri Universitas Diponegoro, Semarang

DOI:

https://doi.org/10.54518/fid.1.2.2023.1220

Keywords:

Green Finance, Green Investment, Sustainable Development, Climate Finance, Green Bonds, Environmental Sustainability

Abstract

Green finance has become an increasingly important financial mechanism for promoting sustainable development and addressing environmental challenges. This study examines the relationship between green finance, green investment, and sustainable development through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. Relevant studies published between 2018 and 2022 were collected from major academic databases and analyzed using thematic synthesis. The findings indicate that green finance supports sustainable development by directing capital toward environmentally responsible projects, renewable energy investments, climate change mitigation initiatives, and sustainable infrastructure development. The review further reveals that environmental regulations, climate risks, sustainability commitments, and policy support are important drivers of green finance adoption. Additionally, green financial instruments, particularly green bonds, contribute to sustainable capital allocation and financial market development. The study concludes that green finance represents a strategic financial innovation that facilitates environmental sustainability, supports low-carbon economic transitions, and promotes long-term sustainable development.

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Published

2023-12-30

How to Cite

Savitri, A. (2023). Green Finance and Sustainable Development: The Role of Green Investment . Finance Innovations Digest, 1(2), 85–103. https://doi.org/10.54518/fid.1.2.2023.1220