Money Market and Green Finance: A Sustainable Development Perspective

The global shift toward environmental sustainability necessitates a rethinking of investment trends, especially in sectors traditionally dominated by fossil fuels. Despite growing awareness, financial flows into renewable energy and sustainable infrastructure remain inconsistent, posing risks to the achievement of global climate goals. Green finance— comprising tools such as green bonds, eco-banking, and sustainable funds—has emerged as a transformative mechanism in bridging this financial gap. However, fossil fuel investment still overshadows green alternatives, particularly in developing economies. This study examines the integration of green finance into India's money market, assessing its effectiveness in channeling resources toward climate-resilient and environmentally sound investments. It highlights the evolving role of the Reserve Bank of India, regulatory bodies, and financial institutions in supporting the green finance ecosystem. By leveraging empirical data and global benchmarks, this paper offers a comprehensive analysis of how the money market can act as a powerful platform to promote sustainable development in India.