Implications of Green Finance Policy on Foreign Investment and National Economic Stability

Abstract

The background of this research focuses on the increasing importance of green finance policies in promoting sustainable development and their influence on foreign investment and national economic stability. Green finance policies aim to reduce the environmental impact of economic activities, however, there have not been many studies that have explored the impact of these policies on foreign investment flows and economic balances in developing countries. Therefore, it is important to understand how these policies affect the attractiveness of foreign investment while maintaining economic stability. The purpose of this study is to analyze the implications of green finance policies on foreign investment inflows and their impact on national economic stability. This research also aims to explore the challenges and opportunities faced by developing countries in implementing green finance policies. This study uses a qualitative method with a descriptive-analytical approach. Data was collected through interviews with economic and environmental experts, as well as analysis of relevant literature and policy documents. Data analysis techniques are carried out with a thematic approach to identify the main patterns that emerge from the data. The results show that green finance policies can increase foreign investment interest, especially from environmentally-focused investors, however, their implementation requires a clear and stable regulatory framework. In addition, the study finds that the policy can strengthen long-term economic stability through more environmentally friendly economic diversification, although in the early stages of implementation it is often faced with increased economic costs.