GREEN FINANCE FOR SDG ACCELERATION: A REVIEW OF SUSTAINABLE INVESTMENT, CLIMATE FINANCE, AND ENVIRONMENTAL GOVERNANCE

Abstract

Green finance is essentially about connecting the financial sector to sustainable development, especially in capital intensive sectors such as climate action, renewable energy, resilient infrastructure and responsible industry. The paper analyzes the contribution of green finance to the Sustainable Development Goals (SDGs) in the form of green bonds, sustainable banking, ESG investment, climate funds, green credit, carbon finance, and renewable energy financing. The literature is synthesized in terms of conceptual foundations, pathways to achieve the SDGs, institutional dimensions, sectoral relevance, barriers and opportunities and research gaps. The analysis shows that green finance can help to support SDG 7, SDG 9, SDG 11, SDG 12 and partially below the SD target for mobilizing resources for developing countries to close the financing gaps, while delivering global benefits through increases in low-carbon wealth and greater accountability of sustainable infrastructure provision. Sound taxonomy, clear disclosures, strong regulation and verification of impact assessment should have better access – including from weak economies – to strengthen its development. Therefore, green finance needs to be viewed along both lines – an environmental financing tool that underpins strategic development for climate-resilient growth.