Study on the hindrance mechanism of green finance promotion based on ISM-MICMAC

Abstract

The G20 Sustainable Finance Report 2022 was adopted at the G20 Summit in 2022, signaling a global agreement on green finance in a growing number of nations. Since then, the use of financial instruments to accelerate the transition to green development and meet the dual carbon goal has gained significant public attention. In this essay, 18 variables that hinder the development of green finance are compiled and identified using a literature review methodology. The explanatory structural model (ISM) model is used to analyze the relationship mechanism between the impeding factors and the promotion of green finance, and the Matrices Impacts Croises-Multiplication Appliance Classement (MICMAC) approach is used to categorize the 18 impeding factors into the driving force-dependency classification. The results show that improving the surface factors with strong dependencies, such as willingness to use green transition funds, scope of supporting industries, capability of industrial restructuring, and difficulty of application, etc., is especially important for promoting green finance. Focus should also be placed on the deeper factors with strong driving forces, such as the lack of regulation of relevant national laws and the restricted freedom of local policy implementation, etc. This paper takes the hindering mechanism of green finance promotion as the research object, and researches to get the hindering chain of the influence of four different dimensional mechanisms on green finance promotion, which is helpful to provide the solution direction when green finance development faces problems.