THE ROLE OF GREEN FINANCE IN DRIVING SUSTAINABLE DEVELOPMENT GOALS: A SYSTEMATIC REVIEW

Abstract

Green finance has emerged as a pivotal mechanism to address the pressing environmental and social challenges of the 21st century, aligning economic growth with sustainability objectives. This systematic review explores the role of green finance in achieving the United Nations Sustainable Development Goals (SDGs). It examines the intersection of financial innovations, policy frameworks, and investment strategies aimed at fostering sustainable development. The findings highlight that green finance facilitates the transition to low-carbon economies by promoting renewable energy projects, energy efficiency, and climate-resilient infrastructure. Furthermore, it underscores the importance of public-private partnerships, financial incentives, and green bonds in mobilizing resources to bridge funding gaps. Challenges such as regulatory inconsistencies, insufficient financial literacy, and the lack of standardized metrics to assess sustainability outcomes are also discussed. The study advocates for a collaborative approach involving governments, financial institutions, and stakeholders to ensure the alignment of green finance initiatives with SDG priorities. By integrating environmental, social, and governance (ESG) principles, green finance offers a transformative pathway toward inclusive and sustainable economic systems.