During the events currently taking place in December 2018, such as the European Climate Congress and the UN climate summit, the so-called The COP (Conference of the Parties) were in favor of propositions and declarations of changes in commercial banks' credit policies, according to which the lending processes of industrial and energy enterprises being a source of greenhouse gas emissions should be reduced, i.e. first of all traditional energy based on mineral combustion, i.e. hard coal, lignite but also petroleum derivatives.
In addition, in some countries commercial banks have already stopped financing for several years, and also credited the development of services that could prove to be unprofitable in the perspective of the next years due to the global warming.
For example, in some regions of European countries where there are mountains, until recently tourism services have developed dynamically, including ski slopes, banks cease to finance the development of these services because from year to year in these mountains less and less snow falls and artificial snow generates more and more costs.
In view of the above, I would like to ask you: Do banks in your country refinance to finance "dirty" technologies, eg classic energy based on minerals?
Please, answer, comments. I invite you to the discussion.
The above question inspired me to the following considerations:
According to the announcement of the President of the World Bank, from 2020 on, the expenditure on pro-ecological activities will be doubled.
Among other things, the World Bank will allocate USD 100 billion for investments in the public sector and additional USD billion for pro-ecological projects on various topics that are supposed to implement and inspire changes in the new green economy to ultimately reduce greenhouse gas emissions on Earth and to slow down increase in average temperature on the Earth's surface.
However, what specific pro-ecological investments should be implemented in order to achieve the intended results? How should those pro-ecological projects be run and in which topics, eg renewable energy sources, creation and implementation of ecological innovations, technologies and pro-ecological materials, etc.?
What pro-ecological activities can and should be implemented by the World Bank to inspire and effectively act on the issue of the sustainable pro-ecological development of the World?
Please reply. I invite you to the discussion
In addition, I note the interesting discussion inspired me to the following considerations:
How should the financing of the development of environment-friendly technologies be developed?
In my opinion, in the future the most important proecological technologies that should be improved and implemented are renewable energy technologies based on solar energy. Solar power plants should be developed. Commercial banks should provide loans for these purposes. However, in order for commercial financing programs to develop, the role of the State as potentially the main subject of financing large pro-ecological energy projects is also important. Similarly with nuclear energy, which is so very expensive to build, that without financial support from state finances, it would often not be possible to build a nuclear power plant.
In view of the above, I would like to ask you: How should the financing of the development of environment-friendly technologies be developed?
Please, answer, comments. I invite you to the discussion.
Dear Friends and Colleagues of RG
During the events currently taking place in December 2018, such as the European Climate Congress and the UN climate summit, the so-called The COP (Conference of the Parties) were in favor of propositions and declarations of changes in commercial banks' credit policies, according to which the lending processes of industrial and energy enterprises being a source of greenhouse gas emissions should be reduced, i.e. first of all traditional energy based on mineral combustion, i.e. hard coal, lignite but also petroleum derivatives.
In addition, in some countries commercial banks have already stopped financing for several years, and also credited the development of services that could prove to be unprofitable in the perspective of the next years due to the global warming.
For example, in some regions of European countries where there are mountains, until recently tourism services have developed dynamically, including ski slopes, banks cease to finance the development of these services because from year to year in these mountains less and less snow falls and artificial snow generates more and more costs.
Please reply
I invite you to the discussion
Best wishes
Therefore, in the context of the above considerations, the following important question appears:
Are there banks and / or companies that take into account forecasted climate changes in their business decisions?
Some banks conducting an analysis of the creditworthiness of an enterprise applying for a long-term investment or mortgage loan take into account the issues of climate change, if these changes may affect the business profitability of a specific lending business venture. For example, in the case of a hotel application for a long-term investment loan operating on the sea, the level of which can rise and flood the hotel area.
Another example is a hotel located in the mountains, where winter sports tourists come. Climate change predictions may indicate that 10 years of snow will no longer be the place where this hotel in the mountains provides its services. Therefore, the bank may not grant credit due to the forecasted secondary effects of progressive climate changes and, above all, the rising average temperature.
On the other hand, companies are developing which produce components for new power plants producing electricity as part of renewable energy sources, produce electric car equipment components, e.g. electric motors, batteries, etc. More and more innovative startups are being produced as part of cooperation with large enterprises and renewable energy plants Wind turbine type subassemblies, charging devices for electric cars, etc. Other companies manufacture packaging from recycled materials, recycled or from biodegradable materials.
Other companies are developing innovative solutions for automatic sorting of rubbish. If eco-friendly products become popular and the state creates good institutional, legal and financial conditions for the development of such projects, then the process of implementing sustainable green economy based on the green economy concept will be implemented more quickly and business probes will become more and more profitable. Financial institutions, including banks, will gradually take into consideration eco-friendly processes and business activities of clients in concluded financial transactions.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Are there banks and / or companies that take into account forecasted climate changes in their business decisions?
Please reply
I invite you to the discussion
Thank you very much
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