Beena Deepthi Louis and Sony Kuriakose
Abstract
Growing environmental crises and the need to slow down climate change have made sustainable development a top priority for both business strategy and international politics. However, conventional funding methods frequently lack the adaptability or incentive frameworks required to support the high-risk, high-reward endeavors necessary for sustainable technology. Green venture capital is a key remedy in this case, spurring advancements in energy-efficient technologies, waste management, sustainable agriculture and renewable energy. In order to close the financial gap between early invention and market scalability, green venture capital is essential. Due to high prices and uncertain returns on investment, many sustainable projects, especially those that emphasize eco-friendly materials, renewable energy sources and circular economy frameworks face initial obstacles. In addition to funding, venture capital investments give early-stage businesses the operational know-how, network access and strategic direction they need to overcome these obstacles. Green venture capital helps scale and commercialize sustainable technologies, which not only speeds up the shift to a low-carbon economy but also boosts economic growth by generating jobs and promoting competitiveness in the market. The market for green venture capital has grown rapidly in recent years, partly due to government rules that support sustainable practices and growing consumer awareness. A favourable environment for environmentally conscious investments has been established by policies such as carbon pricing, tax incentives for green technologies and international climate agreements. This has further encouraged the flow of capital toward sustainable ventures. Thus, the paper explores the crucial function of green venture capital (VC) in driving innovation and scaling technologies essential to achieving sustainable development goals.