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

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a conceptual framework linking ESG investing, green bonds, and policy instruments for transition finance, with insights applicable to comparative studies.

🏢実務担当者:Offers a checklist of governance elements (regulatory integrity, transparent standards, just-transition safeguards) that corporate sustainability teams can use to evaluate their green bond or ESG strategy.

🏛政策担当者:Highlights the need for an integrated governance framework combining market innovation with regulatory integrity, fiscal support, and just-transition safeguards, directly relevant for designing national GX finance policies.

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.

• semanticscholar https://doi.org/10.36948/ijfmr.2026.nssfigtma-2025.2010first seen 2026-06-29 08:50:52