Empowering Consumers in the Transition to a Low-Carbon Economy with Green Premium Green Finance for Consumer

Abstract

The transition towards a low-carbon economy has increased the importance of green consumer finance in promoting environmentally responsible financial behaviour. This study examines how green financial products, including green banking, Green Bonds, ESG investments, and sustainable financial services, empower consumers to support environmental sustainability while achieving financial objectives. The research adopts a descriptive design based on secondary data collected from research articles, government reports, institutional publications, and sustainability literature. The findings reveal that institutional trust, financial incentives, product transparency, digital accessibility, and environmental awareness are the key factors influencing consumer adoption of green financial products. However, limited eco-financial literacy, inconsistent ESG disclosures, and concerns about green washing continue to hinder wider acceptance. The study concludes that improving financial literacy, strengthening regulatory frameworks, enhancing transparency, and expanding digital access are essential for increasing consumer participation in green finance. Greater adoption of green consumer finance can accelerate the transition to a sustainable, low-carbon economy while contributing to long-term environmental protection and inclusive economic development.