ABSTRACT: Green finance represents a wide-ranging challenge to the traditional constructs of financial law. New ‘green’ instruments threaten to transform conventional investment practices, lending standards associated with project finance and accounting conventions. To a large extent this process was inspired and motivated by civic forces: environmentally-socially conscious citizens, environmental groups and private financial institutions. International organizations such as the World Bank and UNEP added further impetus to this process. From a legal perspective the phenomenon of ‘green finance’ reflected a highly patchy social process, constituted by segregated contractual instruments and uncoordinated organizational routines, none of which was subject to meaningful global discipline.

The combination of “Community Finance” and “Green Finance”, that is to say, “Community Green Finance (CGF), that local community people by themselves invest and own sustainable energy system e.g. renewable energy generation. Community Green Financing can 1) reduce various risks of sustainable energy investments, 2) raise local acceptance and environmental awareness and 3) create new industries and employment and thereby can be an effective environmental and economic policy tool in achieving local community development and a low-carbon economy in both developed and developing countries.

Keywords: Environmental Finance, Local/Community Development, Sustainable Energy System, Low-carbon Economy, Public-Private-Finance, Green Finance