IDEAS home Printed from https://ideas.repec.org/a/eoq/bjbmjr/art67.html

Adoption of Green Finance in Bhutanese Commercial Banks: Challenges, Opportunities, and Strategies

Author

Listed:
  • Samal, Nigam
  • Wangmo, Kinga
  • Dorji, Kinley
  • Seldon, Lekzang Pema
  • Yoezer, Pema
  • Wangchuk, Chencho

Abstract

This study examines the institutional challenges, emerging opportunities, and strategic solutions related to the adoption of green finance in three Bhutanese commercial banks. Despite Bhutan’s strong environmental policies and the introduction of the Green Finance Roadmap (2020) by the Royal Monetary Authority, the uptake of green finance within commercial banking remains limited. Using a qualitative phenomenological approach, semi-structured interviews were conducted with key banking professionals engaged in green finance operations. Thematic analysis identified four central themes: institutional and regulatory shortcomings, financial and market-based constraints, potential growth areas for green finance, and the need for coordinated strategic support.Major barriers include the absence of binding green finance policies, limited technical expertise, high perceived risks, and insufficient market incentives. However, the study also highlights significant opportunities in sectors such as mini-hydropower, solar energy, electric mobility, and sustainable housing, particularly when supported through blended finance models and international donor partnerships.The study offers practical recommendations, including the development of a national green taxonomy, implementation of concessional financing tools, and targeted capacity-building initiatives. These findings aim to support both academic research and evidence-based policymaking by offering actionable insights into how Bhutanese commercial banks can accelerate the integration of green finance and contribute to national sustainability objectives.

Suggested Citation

  • Samal, Nigam & Wangmo, Kinga & Dorji, Kinley & Seldon, Lekzang Pema & Yoezer, Pema & Wangchuk, Chencho, 2025. "Adoption of Green Finance in Bhutanese Commercial Banks: Challenges, Opportunities, and Strategies," Bhutan Journal of Business and Management, Gedu College of Business Studies, Royal University of Bhutan.
    • Handle: RePEc:eoq:bjbmjr:art67
    DOI: 10.17102/bjbm.v8.4
    as

    Download full text from publisher

    File URL: https://bjbm.gcbs.edu.bt/index.php/bjbm/article/view/67
    Download Restriction: no
    File URL: https://libkey.io/10.17102/bjbm.v8.4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peterson K. Ozili, 2022. "Green finance research around the world: a review of literature," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 16(1), pages 56-75.
    2. Ozili, Peterson Kitakogelu, 2022. "Green finance research around the world: a review of literature," MPRA Paper 114899, University Library of Munich, Germany.
    3. Hamed Taherdoost, 2022. "How to Conduct an Effective Interview; A Guide to Interview Design in Research Study Authors," Post-Print hal-03741838, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria V. Sigova & Igor K. Klyuchnikov & Oleg I. Klyuchnikov, 2024. "Sustainability and Security of Green Finance from the Multi-agent Games Perspective," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 78-95, February.
    2. Djimoudjiel Djekonbe & Petre Brezeanu & Ştefan Cristian Gherghina & Mouta Mahamat Djourabi, 2026. "Exploring the Effects of Green Finance on Inclusive Growth: Empirical Evidence From African Countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 38(3), pages 553-569, April.
    3. Wilfreda Indira Chawarura & Mabutho Sibanda & Kuziva Mamvura, 2025. "An Assessment of the Roles of the Government, Regulators, and Investors in ESG Implementation in South Africa: A Scoping Review," Administrative Sciences, MDPI, vol. 15(6), pages 1-27, June.
    4. Lu, Xunfa & Huang, Nan & Mo, Jianlei & Ye, Zhitao, 2023. "Dynamics of the return and volatility connectedness among green finance markets during the COVID-19 pandemic," Energy Economics, Elsevier, vol. 125(C).
    5. Tang, Can & Wang, Bing & Zheng, Wenping, 2025. "Can structural loan policy promote low-carbon transition of manufacturing enterprises? New evidence from China," Journal of International Money and Finance, Elsevier, vol. 152(C).
    6. Tang, Xiaobo & Yao, Xingyuan & Dai, Ruyi & Wang, Qian, 2024. "Does green matter for crowdfunding? International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 92(C).
    7. Sedat Baştuğ & Ersin Fırat Akgül & Hercules Haralambides & Theo Notteboom, 2024. "A decision-making framework for the funding of shipping decarbonization initiatives in non-EU countries: insights from Türkiye," Journal of Shipping and Trade, Springer, vol. 9(1), pages 1-27, December.
    8. Ma, Hongmei, 2024. "Role of green innovation and green finance on green recovery: Analysis of natural resources rents," Resources Policy, Elsevier, vol. 89(C).
    9. Meng, Ying & Zhao, Lei, 2025. "Online public opinion attention and corporate green finance development," International Review of Economics & Finance, Elsevier, vol. 100(C).
    10. Choudhary, Shamsher & Ali, Amjad & Audi, Marc, 2026. "The Relations between Internal Controls, Corporate Governance, and the Credibility of Post-Issuance Disclosures of Green Finance: Evidence using Issuer-Level Panel Data," MPRA Paper 128864, University Library of Munich, Germany.
    11. Yamin Li & Guo Wu, 2025. "The green advantage: mapping the profit power of green credit in commercial banks," Economic Change and Restructuring, Springer, vol. 58(2), pages 1-29, April.
    12. Ma, Wenhui & Wang, Kai-Hua & Li, Xin, 2025. "Revolutionizing green finance: The synergistic spillover effects of AI, cloud computing, and blockchain," Technology in Society, Elsevier, vol. 83(C).
    13. Charilaos Mertzanis & Asma Houcine & Athanasios Pavlopoulos & Apostolos Vetsikas & Ilias Kampouris, 2026. "Financial Technology and Environmental Performance: International Evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2664-2689, April.
    14. Dinh Le Quoc & Oanh Tran Thi Kim & Ha Nguyen Thi Hong, 2025. "Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 35(3), pages 69-91.
    15. Yasir Ahmed Solangi & Rakan Alyamani & Muhammad Asghar & Sharafat Ali & Cosimo Magazzino, 2025. "The Impact of Social Investment and Green Finance on Sustainable Development: Evidence From Emerging Market Economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 4366-4379, June.
    16. Li, Shuangyan & Chen, Zehua & Diao, Yu & Chen, Zeming, 2025. "The impact of green finance on debt financing costs from the perspective of strategic corporate signaling behavior—Evidence from China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    17. Pengyu Chen & QianYing Chen, 2025. "Two birds with one stone: can green finance drive the circular economy?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    18. Lalita & Sachin Kumar & Manoj Kumar Dash, 2025. "Synergizing Green Finance and Impact Investing: A Roadmap to Sustainable Ventures," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 9566-9581, December.
    19. Xiaotong Yang & Jinfang Tian & Hao Yan & Peng Qin, 2026. "Green Finance and Climate Technology: Evidence From a Quasi‐Natural Experiment," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 35(1), pages 31-47, January.
    20. Carbune Daniela Iulia Maria, 2024. "Romanian Banking System - Steps To A Sustainable Future," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 206-214, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eoq:bjbmjr:art67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tshewang Phuntsho (email available below). General contact details of provider: https://edirc.repec.org/data/bsrubbt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.