Publication Details
Abstract
Green finance has become an essential pillar of the transition to sustainable and low-carbon development. Although the literature on sustainable finance has expanded rapidly, most studies continue to examine financial instruments, regulatory initiatives, or individual market segments separately. Less attention has been paid to explaining how regulatory institutions, financial markets, and supporting infrastructure operate together as a coherent system, particularly in emerging economies. This paper develops an integrated conceptual framework that explains green finance as a coordinated institutional mechanism rather than a collection of isolated financial instruments. The analysis draws upon contemporary academic research and international policy frameworks and applies conceptual analysis together with a systems perspective to examine the evolution of green finance and the principal approaches found in the literature. The proposed framework identifies four interdependent dimensions—regulatory arrangements, institutional structures, financial mechanisms, and market infrastructure—that collectively shape the capacity of financial systems to mobilize sustainable investment. Their effectiveness depends not simply on the availability of financial resources, but on the quality of interaction among these elements within a coherent institutional architecture. By shifting attention from individual financial products to the functioning of the overall system, the study offers a broader conceptual perspective on green finance. The framework provides a basis for future empirical research and may support policymakers, financial institutions, and international development organizations in designing more effective green finance systems for emerging economies.