What's in a Name?

Abstract

The development of financial mechanisms and markets in recent years has been driven by efforts to reduce emissions and protect environmental quality. Key stakeholders, including lenders, environmentally focused project promoters, and investors using non-financial criteria, have played a role in this shift. Environmental finance has emerged from this evolution, shaped by innovations and regulations, and now holds a central place in modern finance. This chapter examines how environmental finance reintegrates into the financial landscape, fostering market growth and new financial products. It highlights how policies and regulations can drive clean industry innovation, enhance investor awareness, and guide decision-makers toward climate-friendly investments.