Green banking is a new financing trend in which banks shift their investment strategies to focus on environmentally friendly technologies and initiatives. These financial institutions are committed to promoting clean energy and combating climate change through sustainable banking initiatives. Following the Paris Climate Agreement, it became widely popular among banks and has since helped promote investments in renewable energy, reforestation projects, and carbon offsets.

Green banking refers to environmentally conscious banking practices aimed at promoting sustainability and reducing the ecological footprint of financial activities. It involves offering products and services that support eco-friendly initiatives, such as loans for renewable energy projects, energy-efficient homes, and sustainable businesses. Green banks also adopt internal measures like reducing paper usage, utilizing energy-efficient technologies, and encouraging digital transactions to minimize their environmental impact.

The concept aligns with global efforts to combat climate change and promote environmental responsibility. By prioritizing investments in green projects, green banking supports the transition to a low-carbon economy. For consumers, it provides an opportunity to align their financial decisions with their environmental values. Green banking fosters long-term sustainability while driving economic growth responsibly.