In recent years, green finance is not only a vision, but a global need. The rapid consumption of non-renewable energy sources is leading to ecological and economic collapse, with the financial market emerging as a major player in the transition to the sustainable options that can ensure a favorable outcome for the planet in the long run. The thesis is focused on institutional investors among financial market participants whose funds are ideal for mobilization towards green investments, also their large investment capacity and long-term strategic investments are especially suitable for the realization of many green ventures. The goals of green financing can be achieved only in a stimulating environment that prevails within the state, organization and other communities, an appropriate regulatory framework as well as the development of plans for long-term sustainable development. The regulatory framework is one of the biggest barriers to such investments because it’s still in its early stages, but the growing development of the green market requires immediate changes. Institutional investors are pressured by society to implement ESG criteria that may conflict with their fiduciary duty. For this reason, it’s necessary to look at the business models of companies that have effectively made the transition such as the Danish Ørsted - one of the few companies that have successfully switched from fossil fuels to complete production of energy from renewable sources. Compared to developed countries that set sound development frameworks, green finance in Croatia is relatively unknown as a concept, and even less developed in practice. On the other hand, society doesn’t have to rely on regulatory changes to begin the green transition with its individual ventures. One of the examples of active action towards the transition is the Green Energy Cooperative (ZEZ), which is starting its comprehensive national action, which brings citizens closer to the possibility of their own supply of renewable energy sources.