Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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The Impact of Green Finance on Corporate Financing Costs

Authors
Yuhan Hu1, *
1School of Management, Beijing Institute of Technology, Beijing, 102488, China
*Corresponding author. Email: 1120230683@bit.edu.cn
Corresponding Author
Yuhan Hu
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_43How to use a DOI?
Keywords
Green Finance; Corporate Financing Cost; Sustainable Development
Abstract

Green finance has developed rapidly due to the Paris Agreement and people’s growing concern for environmental protection and green development, exerting a profound impact on corporate financing. This study focuses on how green finance affects corporate financing costs and its specific mechanisms. Through a literature review and case comparison analysis, it reveals three core mechanisms. First, risk mitigation mechanism: green financial tools reduce environmental and social risks, improve credit ratings, and lower risk premiums. Next, policy incentive mechanism: the government directly reduces the capital cost of green projects through subsidies, tax incentives, and regulatory preferences. Last, market-driven mechanism: investors’ preference for ESG-compliant assets creates a green premium, lowering the yield of green bonds and broadening financing channels. The study highlights the substantive benefits of green finance through case analysis and comparison, providing key evidence for governments to improve the green finance system and for enterprises to optimize their sustainable transformation financing strategies.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_43How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuhan Hu
PY  - 2025
DA  - 2025/11/03
TI  - The Impact of Green Finance on Corporate Financing Costs
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 349
EP  - 357
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_43
DO  - 10.2991/978-94-6463-874-5_43
ID  - Hu2025
ER  -