Analysis of Stakeholders Interests in Green Finance

The key stakeholders in green finance encompass both financiers and beneficiaries of funds allocated toward environmentally sustainable endeavors. Other stakeholders include local community groups as well as global communities impacted by the continuous degradation of the natural environment due to human activities, particularly those of commercial organizations driven by instrumental motives and lacking empathy for the detrimental effects of their activities on the natural environment. The underlying motivations of the stakeholders, particularly providers and users of funds, dictate their involvement in green finance. While the preservation of the natural environment stands as the primary altruistic motivation behind green finance, stakeholders are often influenced by factors beyond altruism. Stakeholders may prioritize instrumental objectives such as profit maximization or the execution of projects with high positive net present value. Consequently, conflicting interests among stakeholders may arise during the process of financing and utilizing green finance, contingent upon whether their motivations are driven by altruism or instrumentality. This chapter engages in a critical analysis of the motives and interests represented by the diverse stakeholders engaged in green finance. This chapter provides insights in relation to the motives of stakeholders involved in green finance. The chapter suggests that stakeholders reassess their interests and make concessions to reconcile their conflicting interest for the betterment of the common good, the natural environment that affects the well-being of communities around the globe.