The Study on Role of Green Credit in Promoting Energy Transition in India Evidence and Policy Implications

Abstract

The increasing concern over environmental sustainability and climate change has led to a growing emphasis on the transition towards renewable energy sources. In this context, green finance, particularly green credit, has gained importance as a mechanism to support environmentally sustainable investments. India, being a rapidly developing economy, faces the challenge of meeting rising energy demand while reducing its carbon footprint. This study examines the role of green credit in promoting energy transition in India.

The main objective of the study is to analyse the relationship between green credit and the development of renewable energy. The study is based on secondary data collected from reliable national and international sources over a specified time period. A time-series analytical approach is adopted, using statistical tools such as descriptive analysis, unit root testing, co-integration, and regression techniques to examine the relationship between variables.

The findings indicate that green credit plays a significant role in facilitating the expansion of renewable energy by improving access to financial resources. The results also highlight the importance of supportive policy frameworks in strengthening the impact of green finance.

The study concludes that enhancing green credit mechanisms can accelerate India’s energy

transition and contribute to long-term sustainable development.

Keywords: Green Credit; Energy Transition; Renewable Energy; Sustainable Finance; India; Green Banking