Research on the Impact of Green Credit on Enterprise Development

Abstract

This study delves into the significant impact of green credit on corporate development, with a particular focus on its role in reducing financing costs, improving operational performance, and enhancing environmental outcomes. As green credit emerges as a crucial financial instrument, it offers companies preferential financing options that encourage the adoption of environmentally sustainable practices. The research findings indicate that green credit not only reduces the cost of capital but also drives substantial improvements in both financial and environmental performance. This dual benefit is especially pronounced in high-polluting industries, where the adoption of green credit facilitates compliance with environmental regulations and strengthens market competitiveness. Furthermore, the study examines how businesses are adapting their strategies in response to green credit policies, including optimizing their financing structures and investing in sustainable technologies. Overall, the research underscores the vital role of green credit in fostering a sustainable economy by aligning financial incentives with long-term environmental and economic goals.