ADOPTION OF GREEN FINANCE AND GREEN INNOVATION FOR ACHIEVING CIRCULARITY: AN EXPLORATORY REVIEW AND FUTURE DIRECTIONS

“Green finance (GF) and green innovation (GI)” emerged as the pivotal enablers for addressing the global sustainability challenges, fostering transition from the linear economic models to the circular economies. Together, they are forming backbone of a circular economy, a model underscoring regenerative processes, resource efficiency and waste reduction. This exploratory review is synthesizing the existing research to investigate the integration of green innovation and finance in achieving the circularity. Using the approach of systematic literature review, the study identifies the critical themes, gaps in existing literature and theoretical underpinnings. Key theories like “the Stakeholder Theory and Resource-Based View (RBV)” are explored to understand institutional drivers the green practices. The findings underscore the need for a collaborative ecosystem for involve the financial institutions, policymakers, and corporations to scale this form of practices. Furthermore, the paper also explores how the innovative financial mechanisms, regulatory frameworks and technological advancements are interconnected for promote sustainability.