article · Sustainability
Persistent economic exclusion and natural resource depletion pose severe global challenges. Although the Sustainable Development Goals seek to reverse these trends, shifting towards a circular and regenerative economy remains difficult due to insufficient economic incentives. Drawing on theoretical literature, this research examines how green finance can connect with economic inclusion to tackle both resource degradation and exclusion. The findings demonstrate a strong synergy between the two domains, showing that various green finance mechanisms can enable economic participation while encouraging investor support to accelerate the Sustainable Development Goals. Ultimately, green finance emerges as a vital mechanism for establishing and sustaining broad-based, eco-conscious benefit sharing across communities.
Transitioning to sustainable, circular economies often stalls due to a lack of viable economic incentives. Understanding how green finance links directly with economic inclusion allows policymakers and institutions to design investment strategies that simultaneously address environmental degradation and exclusion, ensuring that ecological progress also generates shared, long-term social and economic gains.
This research provides a conceptual framework that could guide development banks, impact investors, and financial institutions looking to structure green finance instruments that promote inclusive growth. Because the findings are drawn purely from a theoretical literature review, the work is at an early conceptual stage and does not offer tested financial products or field-ready deployment pathways.
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Persistent economic exclusion and the high levels of natural resource depletion are alarming. The Sustainable Development Goals (SDGs) are among a few global initiatives aimed at bringing a turnaround in both of these areas of concern. Giving action to productive economic inclusion and transitioning towards a circular, regenerative economy is challenging for countries, particularly because of a lack of economic incentives. Green finance has emerged in the last few decades as a valuable mechanism that has the potential to meet this challenge. In answering the question of how to facilitate the necessary transition to a green, inclusive economy, the paper attempts to bring green finance and economic inclusion together as a possible means (like a bridge) to address economic exclusion and resource degeneration. That is the primary aim of the study, and it is investigated through an analysis of theoretical literature. The key findings include: a strong synergy exists between green finance and economic inclusion; different forms of green finance are able to facilitate economic inclusion; and green finance can be instrumental in attracting investors to fast-track SDG attainment. A key conclusion is that green finance can play a vital role in activating and prolonging broad-based benefit sharing in an eco-conscious way.
This page summarises published work. The authoritative version sits with the publisher.
DOI: 10.3390/su16031128
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