THEORETICAL FOUNDATIONS AND CONTENT OF THE CONCEPT OF GREEN AND SUSTAINABLE FINANCE
Abstract
In this era of profound global economic change, driven by mounting environmental challenges and social imbalances, there is a growing need to reassess the role of the financial system in achieving sustainable development goals. This article is devoted to systematising the theoretical foundations of the concept of green and sustainable finance as an independent scientific paradigm. The article aims to systematise the theoretical foundations of the concept of green and sustainable finance, to elucidate its content and structural components, and to characterise the key financial instruments for channelling capital towards sustainable development. The objective set out in the article was achieved using the following research methods: generalisation, comparison, structural-functional analysis, and a systems approach. This article explores the concept of green and sustainable finance as a key driver of transformation in the modern financial system. It summarises academic approaches and identifies the main stages in the evolution and development of the concept of green and sustainable finance, whilst also outlining the factors underpinning its emergence in the context of global, eco-friendly, and socio-economic challenges. The interconnection between the concepts of ‘green’ and ‘sustainable’ finance is substantiated, and the place of green finance within the broader sustainable finance paradigm is defined. The current instrumental architecture of the green and sustainable finance system comprises a set of financial instruments, mechanisms and institutions aimed at effectively mobilizing and reallocating capital towards areas consistent with the principles of sustainable development. In particular, the key role of instruments such as green bonds, ESG funds, and sustainable investment portfolios, which provide financing for environmentally and socially significant projects, is identified. It has been demonstrated that the further development of the theoretical foundations of green and sustainable finance is a prerequisite for improving the efficiency of financial markets and ensuring long-term economic stability. The practical significance of the findings lies in their potential to improve financial policy, develop sustainable investment instruments, and establish effective mechanisms for financing sustainable development.
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