DISSERTATION

ON

" A study on emerging green finance in india

It's challenges and opportunities"
Submitted in partial fulfillment of award of the degree of bachelor of commerce(B.Voc)
III Principle of Insurance course from
Dr. Bhim Rao Ambedkar University, Agra
2021-2022

Associate Supervisor Supervisor

Dr. Meenakshi Chawla Dr. Rachita Sharma
B.Com (Voc) Insurance Assistant Professor
St. John’s College, Agra Faculty of Commerce
St. John’s College, Agra

Coordinator
Dr, Sanjeev Sharma
B.Com Vocational
St. John’s College, Agra
Submitted By:
Name
Roll No.
Enroll No.

ST. JOHN’S COLLEGE, AGRA

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 CERTIFICATE

This is to certify that Mr. Sidhartha student of (B.Voc) III Principle and Practices of
Insurance has completed the project on “A study on emerging green finance in india
It's challenges and opportunities” during his dissertation in the period. This project is
original and authentic and it has been undertaken by him within the stipulated time under my
guidance.

Dr.Rachita Sharma

(Supervisor)

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 DECLARATION

I hereby declare that the entire project report on “A study on emerging green
finance in india It's challenges and opportunities” under the guidance of
Dr. Sanjeev Sharma , Coordinator (B.Com Vocational) has been carried out by
me and to the best of my knowledge a similar work has not been submitted
earlier. This report is being submitted in the partial fulfillment of the
requirements for the award of the degree of “Bechlor of Commerce
(Vocational)” III Principle and Practices of Insurance from St. John’s
College, Agra.

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 ACKNOWLEDGEMENT

This Project Report is the culmination of the effort done over a period of 3
months. During the course of this project, I had the privilege to learn new
things about research, meet people and persuade them to participate in the
survey.

I gratefully take this opportunity to express my gratitude to my mentor Dr

Sanjeev Sharma and my most able faculty Dr. Rachita Sharma Asst.
Professorfor his active interest, timely encouragement, valuable suggestions
and unceasing assistance and creative criticismat every stage of this project.

Date:

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 TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.

PAGE NO.
INTRODUCTION OF
THE TOPIC
INTRODUCTION OF THE TOPIC

 Need of Study
 Limitation of the Study

2 Review of Literature

3 Objective of the study

4 Suggestions and Conclusion

Findings

5 Refernce and Bibliography

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 Chapter 1
Introduction of the Topic

As Climate Change has a drastic cause and effect relationship

with agriculture and rural development activities, it has
been recognized that activities like forestry, agriculture and
other land use activities, viz., dairy, soil conservation, energy
use practices, use of renewable energy, etc. have tremendous
potential for reducing emission of GHGs. NABARD to address
the issue of precious natural resources viz., land and water,
had organized a workshop for bankers and other
stakeholders on the theme of "Opportunities in Green
Finance" Number of issues pertaining to opportunities in
Green Finance were deliberated and the workshop threw up
several action points for various agencies, which need to be
addressed urgently. Climate change and agriculture are
interrelated and climate change may have significant effects
on crop production and food availability. It is speculated that
by 2050, there would not be any glacier in the world. The
melting of ice would result in frequent floods and significant

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rise in sea level etc. It is estimated that transitioning to a
low-carbon and climate resilient economy and more broadly
„greening growth‟ over the next 20 years will require
significant investment and consequently private sources of
capital on a much larger scale than previously - particularly
given the current state of government finances. Government
policies are therefore needed to support the
commercialization of new technologies and to correct
market failures through carbon. In addition governments
and/or multinational agencies can use so-called “Public
Financing Mechanisms” to provide cover for risks which are
new to pension funds or cannot be covered in existing
markets.

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ATTRACTIVE GREEN FINANCE INDICES
Green indices would identify and pool companies with solid
environmental performance or in the green energy
generation sector or on the basis of other ‘green’ criteria.
They can provide both a benchmark for green performance
of companies in general, as well as a benchmark for the
financial performance of low carbon companies. It can be
classified into three types they are
1. Tracking of companies’ performance in the environmental
set and social governance which participates to be the best.
2. The conceptual work of economic performance of
companies within a specific sector . this is said to be as

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thematic indices
3. The conventional indices that give companies weights
according the climatic condition.
The green indices offers
1. Diversification potential
2. Quality control
3. Screening on the basis of a number of green criteria
4. Aggregation of small green investments into large
investment opportunities

Need of the Study

GREEN BONDS
The importance of establishing standardized criteria for
project eligibility; having minimum financialcharacteristics
such as size, rating and structure; andapplying rigorous
governance and due diligence projectfinance to aid index
providers in putting green bonds on afixed income ‘Green
Index

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Institutional Investors can access green investmentsthrough
traditional or alternative asset classes, morespecifically
through:
Equity
: Vehicles for green equity investing includeindices, mutual
funds, and ETFs.
Fixed-income:
Investors have a choice of “green bonds”,that can be defined
as fixed-income securities issued by governments, multi-
national banks or corporations in orderto raise capital for
green projects.
Alternative asset classes:
The most common vehicles forgreen investing are real estate
funds and infrastructu refunds, which are often organized as
private equity vehicles

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 Limitation of the Study

Climate change has been on the G20 agenda ever since its first summit in 2008,
though more recently the focus has been on circular carbon economy (CCE) to deal
with harmful emissions. There are several flagship programmes that aim at
increasing the awareness and promoting the funding of green initiatives across the
globe. These programmes encourage financial and non-financial firms to embed
environmental considerations into their financing. Major flagship programmes like
Principles for Responsible Investment (PRI), Equator Principles (EP) for financial
institutions, United Nation’s Environment Programme (UNEP) and Statement of
Commitment by financial institutions on sustainable development suggest ways for
implementing green finance among the signatories. Several entities from India are
signatory to these programmes (Table 1). However, it is possible to ensure a steady
flow of finance into sustainable projects only if there is any reliable source of
information on the entities’ overall management of environmental and social risks,
track record on entities’ identification of opportunities that bring both a decent rate
of return and environmental benefits (UNEP)3. In this regard, Sustainable Stock.

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 Research Methodology

In this research paper purely based on the secondary data

and the data has been collected from secondary source
like Published articles, websites, government report etc.
Researcher has reviewed various literature and published
government reports to reach the findings and conclusion.

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 Chapter -2

Review Of Liteture

Ms. Neetu Sharma (2015) in this research article the researcher tried to
access the awareness level of the customers about Green finance and
Green Finance products. Also this study concentrated on the green
finance initiatives taken by the private sector banks. As per this study the
researcher fund out that customers are aware about green finance

initiative program .
Keerthi B.S (2013) in this article the researcher reflect the recent trend
and future opportunities in green finance in emerging market in India.
Also this paper deal with some of the green projects and the importance

of green finance implementation in India .

Priyanka Goel (2016) in this paper the researcher studied the green
finance initiatives taken by the top leading public and private sector in
India and also discussed the green products and services available in
India. The researcher found out that the commercial banks in India
offering various green financial products to customers like Green Home

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Bank loan scheme at low interest rates to encourage the customers to
opt for Green housing, Vehicle finance which aims at reducing the
interest rate by 50% on the loans taken by the consumers on purchase of
cars employing renewable sources of energy and Union Bank of India
offers schemes extending loans to farmers for purchase of solar water

heaters, solar water pumps and installing of solar home lighting system .
Alapati Sai Bharath Reddy (2018) in this paper researcher discussed
the needs, importance and requirement of green finance in India. Also
this paper concentrated on the impact of green finance in Indian
economy and government initiatives towards green finance.

Gopal K. Sarangi (2018) In this paper the researcher studies the Green
finance challenges to achieve 175GW of renewable target by 2022
focusing mainly on the renewable energy in India, how this can make an
impact on the green growth of the Indian economy by analysing various
Energy mix installed capacities and compound Average annual growth
rate of Power generation capacity in India. Also, Researcher focused
on the financing and Lending agencies such as National Clean
energy & environment Fund , Soft Loans from IREDA, Green banks,
Green bonds, Infrastructural Debt Fund , Researcher also studies how
institutional and policy level complicacies uncertainties affect the

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renewable energy target and also explains the most expensive
destination for investment in renewable energy.

Parvadavardini & Nagarajan (2014) In this article the researcher tries

to access the feasibility of Indian Industries to contribute in green
finance and studies the relationship between green growth and green
financing with difference green finance products prevail in Indian
economy and also studies the positive and negative aspects of green
finance , Also researcher focuses on the public financing, Public loans,
grants or funds along with the initiative launch by Bank of Baroda
scheme for financing the SMES and State Bank of India MOU
with Clean Development Mechanism.

Babita Jha, Priti Bakhshi (2019) In this paper researcher tries to access
the importance of green finance in economic growth which directs in
the flow of finance from the public, private and Non Profitable sector.
This researcher explored the various green financing channels for
contributions in India and recommended several measures to face these
hindrances for financing in the green products in the market.

Md. Sabuj Hoshen (2017) In this paper the researcher studied the
allocation of green finance in various green projects in Banks and Non-
Banking sector in Bangladesh. The study analyzed the ongoing green
finance initiatives and their disbursement of Direct and Indirect fund

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in green finance, also researcher explored Bangladesh Bank Refinance
Scheme for green product.
Sudhalakshmi and Chinnadorai (2014) present the status of Indian
Banks in respect of Green Banking and state that though goes green
mantra is essential for emerging economies like India but significant
eftforts have not been taken.
Dharwal & Agarwal (2013) green banking is a key in mitigating the
credit risk, legal risk and reputation risk. The author had suggested some
green ban king strategies like carbon credit business, green fin ancial
products, green mortgages, carbon footprint reduction (paperless
banking, energy conscio usne ss, mass transportation system, green
building), and social responsibility services towards the society.
Bahl (2012) highlights the means of creating awareness about Green
Banking to ensure sustainable growth. Garrett's ranking technique is
used to analyze the most significant strategies in respect of Green
Banking.
Ginovsky (2009) had emphasi zed that in order to implement
ecologically friendly practices, banks should launch new banking
products which promotes the sustainable practices and also needs to
restructure their back office operations
Stewart (2008) did the study on PNC Financial Services, Pitsburgh.
PNC Financial services had many green branches which were certified
by the US Green building Council (USGBC) Leadership in Energy and
Environmental Design (LEED)

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Höhne/ Khosla / Fekete / Gilbert (2012): "Green finance is a broad term that can
refer to financial invest ments flowing into sustainable development projects and
initiatives envionmental products, and policies that encounge the development of a
more sustainable economy. Green finance includes dimate finance but is not
limited to it. It also refers to a wider range of other environmental objectives, for
example industrial polution control, water sanitat ion, or biodiversity protection.
Mitigation and adaptation finance is specifically related to dlimate change related
activities: mitigat ion financial flows refer to investments in projects and programs
that contribute to reducing or avoiding greenhouse gas emissions (GHGs) whereas
adaptation financial flows refer to invest ments that contribute to reducing the
vunerability of goods and persons to the effects of climate change.

Zadek and Flynn (2013): "Green finance is often used iterchangeably with green
investment. However, in practice, green finance is a wider lens including more
than investments as defined
by Bloomberg New Energy Finane and others. Most important is that it includes
operat ional costs of green investments not included under the definition of green
investment. Most obviously, it would include costs such as project preparation and
land acquisition costs, both of which are not just significant but can pose distinct
financing challenges."

PricewaterhoUse Coopers Consultants (PWC) (2013):"For the banking sector,

green finance is defined as financial products and services, under the considerat ion
of environmental factors
throughout the lending decision making, ex post maonit oring and risk
management processes5, provided to promote environmentally responsible
investments and stimulate low-carbon

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technologies, projects, industries and busin esses.

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 Chapter-3
Objective of the study

1. To study the recent trends and future scopes in

Green finance in India.
2. To analyze the challenges and opportunities of
Green Finance in India.
3. To Study the vrious investment avenues in Green
Finance in India

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 Chapter -4
Findings, Conclusion and Suggection
Findings
 As per the analysis there is an enormous scope for Green finance in
India. Determined emission reduction plans, Climate change goals,
increased pressure on the banking and shadow banking sectors, and
limited fiscal space for the government to expand investment,
creates opportunities for green finance.

 For the successful implementation of Green finance, our country

have to take several remedial actions to avoid Blockades of
green finance and should build strong policy measures. As of
now Green Finance facing certain barriers like Structural
barriers, supporting infrastructure Facilities and no proper clarity
in Policies and regulations

 In India we have various avenues for Green Finance. Green Bonds,

Green Insurance and other green finance investment are the some
of the products of green finance. In the year 2014 IRDA (Indian
Renewable Energy Development Agency) has issues a tax free
bond for Rs. 1000 each. Also Yes bank issues 10 years green

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 infrastructure bond in the year 2015 to raising an amount of rupees
1000 Cr.

 Green insurance schemes are those schemes which provide risk

cover at a low premium and enhanced coverage for green products
to minimize the impact of climate change, by this means
promoting good corporate activities. In India at currently HSBC
cooperated with Allianz to offer its customers with green
reinvestment insurance. It provides cover to buildings obtaining
certification from international environmental standards such as
US LEED (Leadership in Energy and Environmental Design) and
BREEAM.

 Overall India was at 33 % towards meeting its 2022 renewable

installed power capacity target by 175 GW. Wherein, Public
finance contribution is the most required source of finance for this
sustainable development activities but Indian Government is facing
a huge financial deficit in the financial year due to which the
difficulty for achieving this target declines.

Conclusion
To shape economic development in sustainable manner, India needs to
come up with green finance strategies and products. India needs around

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$4.5 trillion infrastructure funding by 2040 to build our economy in
sustainable manner. India already started to invest in green finance
products and services with the help of public sector, private sector as
well as government. Whatever investment we have in green finance as
of now is not enough to reach the sustainable development goal. The
government of India should setting a clear green investment strategy
focusing on long term, economy wide view. Also green finance policies
and regulations should be transparent and clear, so that it may lead to
attract the investors. Green finance concept have to implement in such
a way that it needs to attract both local and international investors.

Suggection

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 Chapter- 5
Reference and Bibliography
Reference

B.S, K. (2013). A Study on Emerging Green Finance in India: Its

Challeges and Oppurtunities . International Journal of Management and
Social Sciences Research (IJMSSR)

Bakhshi, B. J. (2019). Green Finance: Fostering sustainable

development in India. International Journal of Recent Technology &
Engineering (IJRTE).

Goel, P. (2016). GREEN FINANCE: A STEP TOWARDS

SUSTAINABLE FINANCIAL SYSTEM . Abhinav International
Monthly Refereed Journal of Research in Management & Technology.

Hoshen, M. S. (2017). Green Financing: An Emerging Form of

Sustainable Development in Bangladesh. IOSR Journal of Business and
Management (IOSR-JBM)

Ms. Neetu Sharma, M. S. (n.d.). “A study on customer’s awareness on

Green Banking initiatives in selected public and private sector banks

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with special reference to Mumbai” . IOSR Journal of Economics and
Finance (IOSR-JEF)

Bibliography

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