DOI: https://doie.org/10.10399/NER.2025732533
Dr. Parul Tandan, Dr. Sekappa N Makkalageri, Dr Seema Sinha
Keywords:Impact Investing, Financial Returns, Environmental Goals, Sustainable Finance, Renewable Energy, Conservation Projects, ESG, Net-Zero Commitments
The convergence of escalating global environmental challenges and a growing awareness of the limitations of traditional financial models has propelled impact investing into the forefront of sustainable finance. This report analyses impact investing, focusing on its role in channelling capital toward renewable energy and conservation projects in India. The findings underscore the urgency of addressing climate change, evidenced by record-breaking temperatures and extreme weather events in 2023 (NOAA, 2024; WMO, 2024). Policy frameworks like the European Green Deal and India’s National Action Plan for Climate Change (NAPCC) create enabling environments for sustainable finance. The impact investing market reached $1.571 trillion USD globally by 2023 (GIIN, 2024), with significant participation from institutional investors. Innovations such as blended finance and advancements in measurement frameworks (e.g., ISSB, IRIS+, SASB) enhance transparency and accountability. While challenges persist, including greenwashing and balancing returns with long-term goals, the trajectory indicates a growing role for impact investing in achieving environmental sustainability.