The Role of Green Finance in Fostering Green Startups: An Indian Perspective

Introduction

Promoting economic growth should not come at the expense of harming the environment. There is a growing global emphasis on environmental sustainability and a shift toward eco-friendly economic transformation. The advancement of green technology is the key driver in achieving environmentally responsible pecuniary growth, making the study of sustainable revolution by businesses valuable (Hu et al. 2021). To address the pressing issues of climate change, various summits, and conferences have embraced a sustainable development framework as part of their action plans. The 2030 Sustainable Development Goals (SDGs) represent a unique set of seventeen time-bound objectives aiming at balanced economic, social, and environmental sustainability (Bhatnagar et. al, 2022).

The primary objective of this chapter is to assess the recent landscape of Green Finance (GF) in India and its impact on start-ups. Current statistics indicate a diverse array of start-ups emerging from various sectors, positioning India on a global platform for discussions encompassing both economic and environmental sustainability. A published report mined for this chapter suggests that the government has initiated various programs and extended Green Finance (GF) assistance to burgeoning start-ups. Simultaneously, young entrepreneurs are leveraging these initiatives, deriving significant advantages by establishing sustainability-focused start-ups (Lakhanpal et al., 2023).

Over recent years, India has demonstrated a trajectory towards financing green projects, witnessing substantial transformations within the nation's financial industry to embrace eco-friendly practices. India's commitment to green financing initiatives holds significant implications, contributing substantially to both domestic environmental sustainability and the broader international agenda on climate change mitigation and sustainable development. Recognizing that businesses serve as the driving force behind the economy, the implementation of sustainable business practices becomes pivotal in the pursuit of achieving carbon objectivity (Lakhanpal et al., 2023). The strategic focus on green financing endeavors, particularly in renewable energy, energy efficiency, and sustainable infrastructure, serves as a linchpin in aligning India's efforts with global imperatives outlined in international frameworks such as the Paris Agreement (Kaur, et al. 2023). By allocating substantial resources and facilitating investments in renewable energy projects, India substantiates its dedication to transitioning towards a zero-carbon economy, thus directly supporting the global objective of limiting global temperature rise. Moreover, these initiatives resonate strongly with the UN Sustainable Development Goals (SDGs), notably SDG 7 (affordable and clean energy), SDG 13 (climate action), SDG 11 (sustainable cities and communities), and SDG 12 (responsible consumption and production).

India's strides in green financing not only exemplify its commitment to sustainable growth but also position the nation as an exemplar for international cooperation and knowledge exchange, fostering a shared commitment towards global sustainability objectives (Kaur, et al. 2023). Such concerted efforts further integrate India into the global economy by attracting international investments aligned with environmentally responsible practices, amplifying the collaborative pursuit of a more sustainable future on a worldwide scale (Sharma et. al., 2023).The chapter will talk about sustainability and green finance followed by Green Start up and its intersection with green finance along with case studies lastly role of India in Green Initiatives is discussed.