Feasibility Study of Green Banking Development in Afghanistan

As climate challenges intensify and global commitments to sustainable development deepen, green banking has gained prominence as an innovative paradigm within contemporary financial systems, drawing increasing attention from economic policymakers. This study explores the feasibility of advancing green banking in Afghanistan through a qualitative, interpretative phenomenological approach. Data were gathered via semi-structured interviews with 50 experts across banking, environmental policy, and financial governance, and analyzed using thematic analysis. The findings highlight substantial barriers, including weak institutional and regulatory frameworks, a lack of green financial instruments, limited technical capacity, and low levels of environmental awareness. Nevertheless, the country’s abundant renewable energy resources, potential for international collaboration, and strategic geopolitical position present favorable conditions for the implementation of green banking. The study proposes a set of strategic recommendations, including the development of a national green banking policy, institutional strengthening, educational capacity-building, and the establishment of an independent supervisory authority. Together, these initiatives offer a localized and actionable roadmap for facilitating Afghanistan’s transition toward a sustainable, green financial ecosystem.