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Green Finance

Green finance refers to financial investments that support environmentally sustainable projects and initiatives. This includes funding for renewable energy, energy efficiency, pollution prevention, sustainable agriculture, and conservation efforts. Green finance aims to mobilize capital towards activities that contribute to climate change mitigation and adaptation, biodiversity conservation, and resource efficiency.

Financial instruments in green finance include green bonds, green loans, and sustainability-linked loans. These instruments often come with specific criteria and reporting requirements to ensure that funds are used for genuinely sustainable purposes. By integrating green finance into their portfolios, investors can align their financial goals with environmental objectives, manage risks associated with climate change, and support the transition to a low-carbon economy.