Green Finance is any structured financial activity – a product or service that’s been created to ensure a better environmental outcome. It includes loans, debt mechanisms, and/or investments that are used to encourage the development of green projects and minimize the impact of climate change on regular projects. It is a tool adopted by FIs for enterprises to promote environmentally responsible acts and stimulate low-carbon footprints and emissions, biodiversity, and pollution reduction. Green Finance is a subset of Sustainable Finance, focusing on environmental projects exclusively.
