IMPACT OF GREEN FINANCE ON THE ECONOMY OF DEVELOPING COUNTRIES

Green finance refers to the environment-friendly investment and projects that address sustainability. Presently, excessive use of technology has put a severe challenge for the economy throughout the world. Today, economies are facing two significant problems: environmental impacts and money urgency. So, it needs financing to address the two alarming challenges which otherwise can go from bad to worse. Keeping this in mind, green finance is considered as the solution to environmental degradation. Green finance is also connecting nature with the economy, and it widely addresses ecological development and sustainability. That's why most of the companies have named their stocks as green bonds or green sukuks (it is the name of the stock in Islamic and Ethical Finance, Sukuk is a bond but invested under some defined principles) in ethical finance. It further promotes green activities through monetary improvement. Moreover, ethical finance refers to the investment that is based on specific values and principles. There is a deep relation between green finance and ethical finance; their pinpoint is the same, for example, both support the responsible investment— additionally, this paper endeavours to find out the literature related to green investment and ethical finance.