An integrated green credit governance framework for sustainable finance

Abstract

Green finance has become one of the principal instruments supporting the transition to a low-carbon economy by mobilizing financial resources for environmentally sustainable investments. Within the European Union, green bonds, green loans, and ESG-oriented financial instruments play an increasingly important role in achieving climate neutrality. Poland occupies a distinctive position in this process as the world's first sovereign issuer of green bonds while simultaneously facing significant challenges related to energy transition and sustainable economic development.

Problem Statement. Despite the rapid expansion of sustainable finance, existing green financing mechanisms remain fragmented. Public authorities, international financial institutions, commercial banks, producers of green technologies, and end-users frequently operate independently, reducing the overall efficiency and effectiveness of green credit allocation.

Unresolved aspects of the problem. Previous studies primarily examine green bonds and green loans separately, while limited attention has been devoted to integrated governance mechanisms that coordinate stakeholders within a unified sustainable finance ecosystem. Furthermore, the role of renewable energy technology producers as direct beneficiaries of preferential green financing remains insufficiently investigated.

Purpose of the article. The study aims to analyse the development of green finance in Poland and to develop an integrated green credit governance mechanism that strengthens institutional coordination, improves access to sustainable financing, and supports environmental and economic transformation.

Presentation of the main material. The study employs comparative, statistical, institutional, and system analyses, complemented by conceptual modelling. The empirical analysis is based on descriptive and comparative data from European and Polish financial institutions covering the period 2014–2025, including green bond and green loan markets, ESG-related initiatives, and sustainable finance policies. An econometric framework is proposed for future empirical validation; no econometric coefficients are estimated in the present study.

Conclusions. The findings demonstrate that green finance has become a strategic driver of sustainable development in Poland. The proposed integrated green credit governance mechanism combines government institutions, international financial organizations, commercial banks, green technology producers, and final users within a unified financing ecosystem. The study introduces preferential financing for producers of green technologies, ESG-based assessment, and risk-sharing instruments as key components of sustainable credit governance. The proposed framework may enhance the effectiveness of green finance, improve institutional cooperation, and support the implementation of the European Union Sustainable Finance Framework and long-term climate objectives.