International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 4 (July-August 2026) Submit your research before last 3 days of August to publish your research paper in the issue of July-August.

Financing the Green Future: ESG Investing, Green Bonds and Public Policy Instruments

Author(s) Dr. V. Ravi Kumar
Country India
Abstract The financing of climate transition has become a defining challenge for contemporary financial systems, particularly in emerging economies where decarbonisation must proceed alongside developmental expansion. This paper examines the evolving role of Environmental, Social, and Governance (ESG) investing, green bonds and public policy instruments in mobilising capital for a low-carbon and climate-resilient future, with specific reference to India. It argues that sustainable finance is no longer a peripheral ethical consideration but a core mechanism through which financial markets can influence environmental outcomes, reshape risk assessment and support long-term structural change. The expansion of green debt markets and the institutionalisation of sustainability disclosure norms suggest that financial regulation is increasingly being used to align capital allocation with climate objectives.

Using a conceptual and analytical approach, the paper synthesises recent policy developments to assess the effectiveness of ESG investing and green bonds as channels of transition finance. It highlights the significance of SEBI’s sustainability reporting architecture, green debt securities guidelines and the Government of India’s Sovereign Green Bond Framework in strengthening market credibility and investor confidence. At the same time, it identifies persistent constraints, including green washing, rating divergence, uneven disclosure quality, limited taxonomy clarity and the risk that transition costs may be borne disproportionately by vulnerable workers and regions. The paper concludes that financing the green future requires an integrated governance framework in which market innovation is anchored by regulatory integrity, fiscal support, transparent standards and explicit just-transition safeguards.
Keywords Sustainable Finance, ESG Investing, Green Bonds, Climate Transition, Public Policy, India
Published In Conference / Special Issue (Volume 8 | Issue 3) - National Seminar on Sustainability in Focus: Innovations for Greener Tomorrow: A Multidisciplinary Approach (NSSFIGTMA-2025) (June 2026)
Published On 2026-06-24
DOI https://doi.org/10.36948/ijfmr.2026.NSSFIGTMA-2025.2010

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