1Research Scholar, Central University of Haryana
2Prof., Dean of Students Welfare, Central University of Haryana
Online Published on 10 January, 2024.
This study contributes to the literature of the novel concept of green insolvency, its growing importance in India and how it can be introduced in the current legislation.
A meta-analysis of literature has been performed using information which has been supported by publications from various agencies such as Task Force on Climate-Related Financial Disclosures and Oxford Law.
It suggests that in order to effectively manage the risk of insolvency and bankruptcy, environmental damages should be included in administrative charges, environmental claims should be given priority in liquidation proceedings, concept of insurance fund should be created and incentives in the form of grants in exchange for mandatory climate reporting should be introduced.
By synthesising and assessing the extensive literature on climate change and insolvency risk, the current study offers a fresh perspective which no study in India has done till date.
Insolvency, Bankruptcy, Green, Climate change, Sustainability, Credit risk
