Green financing promotes environment-friendly practices and sustainable development. Ideally, it facilitates projects having positive climatic effects, such as renewable and sustainable energy options, energy conservation and efficiency, preventing and abating pollution and land degradation, conserving water and the sources of water, and efficient waste management. Therefore, this study analyses credit options for medium and small renewable energy projects. A comprehensive analysis of the current state of green and solar financing within Pakistan’s banking sector has been drawn, based on primary data collected from various commercial banks in Islamabad, Multan, Faisalabad, Rawalpindi Sialkot, and Lahore.

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