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Impact of Sustainable Finance on MSMEs and other Companies to Promote Green Growth and Sustainable development

Author

Listed:
  • K. M., Mahesh
  • Aithal, Sreeramana
  • Sharma, KRS

Abstract

Purpose: Sustainable Finance (SF) contributes to better development and better Finance for Economic growth. Sustainable development is protecting and restoring the ecological system. SIDBI, NITI Aayog, and World Bank facilitate Sustainable Finance to encourage businesses to grow from Small Medium Enterprises to large Industries to make an enormous global impact. As per the World Bank estimate, adversely affect the standard of living of the population and climate change will reduce India’s GDP by nearly 3%. For tracking the climate protection performance of the country, the CCPI tool is used. The Key sustainable finance providers to companies and MSME’s are Banks, Corporations, International Financial Institutions, Institutional Investors, International organizations through Financial Instruments Climate Funds, Green Bonds, Impact Finance, Social bonds, Microfinance, SIDBI Sustainable Finance Scheme for funding, NABARD, and Make in India. MSMEs, and SMEs involved in the Projects Solar Power Plants, renewable energy, Green Machinery, Waste Management, Electric Vehicles (EV), Clean Energy, Recycle, Poverty alleviations, and Energy conservation, and India is committed to achieving Net Zero Emissions by 2070. During the Climate summit in Glasgow, India accepted for Five –Point climate ‘panchamrit, or pledge’ towards climate change and Climate Finance. As per the Environment ministry. India needs $280 billion for green infrastructure and the government of India proposed the creation of a Social Stock Exchange, Europe Investment Bank (EIB) with SBI. RBI has considered Green and Sustainable projects should be put under Priority Sector Lending (PSL) to support GE (Green Economy) growth and to meet the SDG (Sustainable Development Goals) and ESG (Economic, Social, Environment) guidelines for fundraising. Methodology / Design /Approaches: In this article theoretical concepts are used in the analysis of various financing Mechanics for green production and Sustainable development. Findings and results: The effectiveness of sustainable finance or Climate finance required for MSME and Companies for greener production infrastructure and government of India missions on climate Change, Regular to boost the ESG to promote sustainable development and Economic growth. Originality/value: Analysed the various articles and case studies and prepared the model required for sustainable fiancé for green growth in India.

Suggested Citation

  • K. M., Mahesh & Aithal, Sreeramana & Sharma, KRS, 2022. "Impact of Sustainable Finance on MSMEs and other Companies to Promote Green Growth and Sustainable development," MPRA Paper 112058, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:112058
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    References listed on IDEAS

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    1. Richa Shelly & Tanuj Sharma & Simerjeet Singh Bawa, 2020. "Role of Micro, Small and Medium Enterprises in Indian Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 84-91.
    2. Aziz Durrani & Masyitah Rosmin & Ulrich Volz, 2020. "The role of central banks in scaling up sustainable finance – what do monetary authorities in the Asia-Pacific region think?," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 10(2), pages 92-112, April.
    3. Eva Boxenbaum & Jean-Pascal Gond, 2006. "Micro-strategies of Contextualization Cross-national Transfer of Socially Responsible Investment," DRUID Working Papers 06-24, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Gu, Jing & Renwick, Neil & Xue, Lan, 2018. "The BRICS and Africa's search for green growth, clean energy and sustainable development," Energy Policy, Elsevier, vol. 120(C), pages 675-683.
    5. Cristina I. Fernandes & Pedro Mota Veiga & João J.M. Ferreira & Mathew Hughes, 2021. "Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2021-2037, May.
    6. Aithal, Sreeramana & V.T., Shailashree & Kumar, Suresh, 2016. "Application of ABCD Analysis Framework on Private University System in India," MPRA Paper 71769, University Library of Munich, Germany, revised Apr 2016.
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    Cited by:

    1. Razzaq, Asif & Yang, Xiaodong, 2023. "Digital finance and green growth in China: Appraising inclusive digital finance using web crawler technology and big data," Technological Forecasting and Social Change, Elsevier, vol. 188(C).

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    More about this item

    Keywords

    ESG; Climate Finance; Financial Institutions; Green Bonds; Green Economy; MSME’s; RBI; SIDBI; Social Stock Exchange; Sustainable Development Goals (SGS’s); ABCD analysis;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L8 - Industrial Organization - - Industry Studies: Services
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P4 - Political Economy and Comparative Economic Systems - - Other Economic Systems
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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