Despite its benefits, green financing faces several challenges:
High Initial Costs: Many green projects require substantial upfront investment. Risk Perception: Investors may perceive green projects as high-risk due to their innovative nature and long payback periods. Lack of Standardization: The absence of standardized criteria for what constitutes a ‘green’ project can lead to confusion and greenwashing. Limited Awareness: Many businesses are still unaware of the financial instruments available for green financing.