Green finance: between commitment and illusion

Abstract

Purpose After almost 10 years, people wonder if green finance has been able to attain its objectives in terms of controlling climate change. Persistent global warming and climate deregulation manifested by melting glaciers, droughts and floods, are all of these determinants that have called into question the efficiency of green finance. Design/methodology/approach Green finance is a way to support climate action through investments. It has proven that this is a viable financial instrument and that it can be used by governments and private companies to plan for the future of our planet. Findings Based on an analysis of articles published in top international journals from 2016 to 2022, about the relationship between green technology and financial services in China, this paper aims to present an overview of green finance, its importance for the planet, its objectives and its instruments. Research limitations/implications This study’s contribution is to shed light on the aspects that may have limited its effectiveness, such as the absence of incentives, the absence of climate costs and above all the absence of finance green standards. Originality/value The results have shown that there is still a significant gap in green finance before inclusive green growth can be achieved. Inclusive green growth. All stakeholders need to increase the level of investment in green finance. The green investment financing gap is the result of inconsistencies in sustainability and policies. Therefore, governments must intervene to impose appropriate policies and regulations to compel the financial sector to engage in sustainable development. All of these factors make the concept of green finance just an illusion.