Green finance in circular economy: a literature review

Bhavesh Kumar (), Love Kumar (), Avinash Kumar, Ramna Kumari, Uroosa Tagar and Claudio Sassanelli
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Bhavesh Kumar: Lincoln University College Malaysia
Love Kumar: Lincoln University College Malaysia
Avinash Kumar: University of Florida
Ramna Kumari: Quaid-E-Awam University Nawabshah
Uroosa Tagar: Queen Mary University of London
Claudio Sassanelli: Politecnico Di Bari

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 7, No 4, 16419-16459

Abstract: Abstract Developing markets are using sustainable development potential to reach zero-carbon goals. Due to the limitation of natural resources, companies need to use environmentally friendly manufacturing to develop a circular economy (CE). Green finance (GF) and the CE are linked in a systematic and complex approach; therefore, it was essential to employ the coupling coordination-level framework to explain their relationship and feedback. Any study linking green financing and CE together has been found. The objective of this research is to explore this twofold domain and determine its main characteristics. To address this objective, a comprehensive review of the literature was conducted, supplemented by a bibliometric analysis. The results confirm that GF has the potential to help society, sustainability, and the prevention to climate shifts, investing in the CE. There are many hurdles to overcome, including inadequate knowledge about CE and GF, ambiguous definitions, a lack of coherence between legal frameworks on CE and green financing, unclear laws, and a lack of financially viable motivation for investors and financial institutions that are ready to promote in sustainability. This study explores CE and GF domains. Managers may readily increase their understanding of methods, strategies, and technical solutions beneficial to assist their operations toward a green economy depending on various CE and GF elements. Finally, based on a categorization of GF types, the assessment identifies future investment potential consequences of green financing in the CE.

Keywords: Circular economy; Sustainable finance; Nexuses; Green finance; Circular supply chains; Responsible production and consumption (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10668-023-03361-3

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