GREEN FINANCE AND ITS ROLE IN GLOBAL SUSTAINABLE DEVELOPMENT: TRENDS, CHALLENGES, AND POLICY IMPLICATIONS

Abstract

The digital transformation towards a low emission economy and adaptation to climate change is a persistent, long term, and comprehensive process across all sectors of the economy. Green finance has emerged as a strategic tool for mobilizing resources. This paper aims to provide a systematic and updated review of global green finance development, combining theoretical perspectives and empirical evidence. In the context of countries accelerating their commitments to sustainable development, green finance acts as a bridge between economic growth and environmental protection, contributing to the promotion of an inclusive and long term development model. This study analyzes the concept, operating mechanisms, global development trends, and challenges in implementing green finance. The study also discusses policy implications to enhance the effectiveness of green finance frameworks, especially in emerging economies. The results, synthesized from sources such as the World Bank, the International Monetary Fund, the United Nations Environment Programme, and previous empirical studies, show that green finance is not only a tool to support environmental goals but also a crucial pillar in ensuring long term financial stability and mitigating systemic risks related to climate change.