CHALLENGES AND IMPLICATIONS OF GREEN FINANCING ADOPTION AMONG SMES IN UTTAR PRADESH: THE MEDIATING ROLE OF PERCEIVED ENVIRONMENTAL AND ECONOMIC BENEFITS

Abstract

Green financing has emerged as a critical mechanism for promoting sustainable economic development and environmentally responsible industrial growth across the globe. Governments, financial institutions, and international agencies are increasingly emphasizing green investment practices to address environmental degradation, climate change, and resource depletion (Schaltegger & Burritt, 2018). Green finance refers to financial investments directed toward environmentally sustainable projects, renewable energy adoption, pollution control, and eco-friendly technologies (Taghizadeh-Hesary & Yoshino, 2019). In recent years, Small and Medium Enterprises (SMEs) have gained considerable attention because of their contribution to employment generation, industrial development, and economic growth. However, SMEs also contribute significantly to environmental pollution due to unsustainable production and operational practices (Yadav & Pathak, 2017).