Green Financing: Sustainable Financial Models and Practices That Promote Environmental Responsibility in the Financial Sector
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Abstract
Green financing depicts the financial sector as a major driver for ending environmental challenges in Nigeria by mobilizing funds from the private and public sectors of the economy towards ending climate and environmental issues that plummet sustainability. This study, therefore, examines green financing as a tool for promoting environmental sustainability in Nigeria. The author adopts a documentary approach to examining sustainable financial models and practices that promote environmental responsibility in the financial sector. While reviewing previous literature and empirical studies to create a balance between qualitative and quantitative research, the study reveals that the creation of neo-green institutions, green regulatory sandbox policies, the percentage contribution of retained earnings by corporates, and the establishment of the Nigerian carbon market will play a pivotal role in achieving environmental responsibility in the financial sector. The study, therefore, recommends that the government should intentionally establish new banks and fix affordable reserve ratios that promote lending activities for sustainability.