Abstract
Environmental finance is developing as a field in response to an acceptance of the idea that sound environmental management is positively correlated with sound economic management. Thus, there is growing confidence that environmental quality is justified by the bottom line. However, because environmental quality cannot be packaged like a physical commodity and sold in a traditional marketplace, innovation has been required to develop new financial instruments that recognize and reward environmental virtue in the private sector. The paper studies such related problems as the environment management and shareholder value creation, environmental management system, tools of risk management accelerate the development of environmental finance.
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