Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
The green credit policy is a financial mechanism implemented by governments to encourage banks and other financial institutions to provide loans and support for environmentally friendly projects and businesses.
Related terms
Environmental Impact Assessment (EIA): EIA is a process used to identify and evaluate potential environmental effects of proposed projects or policies before they are implemented.
Eco-labeling: Eco-labeling involves certifying products or services that meet specific environmental standards, helping consumers make informed choices about environmentally friendly options.
Corporate Social Responsibility (CSR): CSR refers to a company's commitment to operating ethically and responsibly by considering social, economic, and environmental impacts in its business practices.