Q.3 As the world copes with the repercussions of carbon emissions, there is growing pressure to achieve climate-compatible growth. In this context what do you understand by the term green finance? Discuss how it will help to achieve climate-compatible growth along with limitations of green finance. (10 Marks)

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2 responses to “Q.3 As the world copes with the repercussions of carbon emissions, there is growing pressure to achieve climate-compatible growth. In this context what do you understand by the term green finance? Discuss how it will help to achieve climate-compatible growth along with limitations of green finance. (10 Marks)”

1. 

   August 30, 2022

   AKANKSHA GUPTA

   KAxwxqQfLmB68Q @staff

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   1. 

      September 1, 2022

      Staff @CD

      Akanksha

      Your structuring of the answer is good, content can be improved upon a bit.
      Introduction is fine but again a bit long, try to keep the introduction concise (2 lines max).
      Next, you can mention few points on why green finance is needed (physical risks, mitigation and adaptation needs etc)..use flowcharts/hub-spoke diagrams to enrich.
      Next part is decent, some areas of green finance such as water management, protection of biodiversity and landscapes, industrial pollution control, energy efficiency, renewable energies, etc. can be mentioned to show its importance.
      Limitations are fine, try to include more points and less explanation to make the answer more diverse; you can talk about other issues such as no consensus on definition of Green Finance resulting in lack of standard accounting framework. Good that you have mentioned India-specific challenges, RBI’s mandate of achieving growth can also be mentioned.
      Way forward is decent, some newer ideas such as providing incentives/ downgrading credit ratings etc to businesses depending upon their climate-friendliness can be added.
      Also, always try to write a concluding statement otherwise the answer looks incomplete.
      Keep practicing. 🙂