Global Green Finance as a Catalyst for Economic and Environmental Sustainability with Reference to Iraq's Agricultural SMEs

Abstract

This research aims to examine the role of global green finance as a critical driver of both economic and environmental sustainability within small and medium-sized agricultural enterprises (SMEs) in Iraq. Utilizing a convergent mixed-methods framework, the study integrates qualitative interviews with key stakeholders and a quantitative survey of 300 agricultural SMEs to assess the barriers, enablers, and institutional conditions influencing the adoption of green finance. The findings indicate that, despite growing awareness and substantial latent demand for sustainability-linked investments, adoption is significantly constrained by institutional fragmentation, regulatory ambiguity, and resource limitations at the firm level. Grounded in Institutional Theory and the Resource-Based View, the study demonstrates that the adoption of green finance is shaped by the interaction between macro-level institutional structures and micro-level organizational capacities. This research contributes to the existing literature by offering a comprehensive theoretical framework to explain green finance dynamics in fragile states, while highlighting the moderating role of public-private partnerships and policy coherence. The practical implications underscore the need for regulatory reform, the development of context-specific financial products, and capacity-building support for SMEs—each essential for fostering a robust and inclusive green finance ecosystem. The study offers empirical insights from a conflict-affected economy and presents transferable lessons for advancing sustainable finance in similarly fragile and climate-vulnerable contexts.