In my opinion, both large investment banks as well as many smaller commercial, deposit and credit banks should increase the scale of financing of pro-ecological projects every year. This issue is particularly important in connection with the progressive global warming of the Earth. Global warming is recognized by many scientific centers as one of the greatest threats to humanity and life on Earth in the perspective of the end of the 21st century. Therefore, it is necessary to develop environmentally friendly projects, such as the development of renewable energy sources, reduction of classic energy sources based on mineral incineration, improvement of waste segregation techniques, recycling, development of electromobility, sustainable agricultural production, environmental protection, etc., by all possible means.

In connection with the above, I am asking you the following question:

Should commercial banks increase the scale of financing pro-ecological projects?

Please reply

Best wishes

In addition, a few, operating multinational, globally large investment banks, implementing certain fundamental international policy goals, such as the World Bank, declare that in the coming years they will increase the scale of financial resources allocated for financing pro-ecological projects.

In my opinion, both large investment banks as well as many smaller commercial, deposit and credit banks should increase the scale of financing of pro-ecological projects every year. This issue is particularly important in connection with the progressive global warming of the Earth. Global warming is recognized by many scientific centers as one of the greatest threats to humanity and life on Earth in the perspective of the end of the 21st century. Therefore, it is necessary to develop environmentally friendly projects, such as the development of renewable energy sources, reduction of classic energy sources based on mineral incineration, improvement of waste segregation techniques, recycling, development of electromobility, sustainable agricultural production, environmental protection, etc., by all possible means.

In connection with the above, I am asking you the following question:

Should commercial banks increase the scale of financing pro-ecological projects?

Please reply

Best wishes

Without hesitation but should examine the necessity of project for serving deserving population especially in South-East Asian Countries riddled with exploding population with lack of basic habitation and allied infrastructure using modern technologies with green compounds that encompasses use of pollution causing materials of industrial byproducts such as flyash etc and utilizing discarded construction materials in large scale.

It depends upon regulations of central banks

Since ecological issues bedevil the whole of humanity, and execution of greening projects need adequate funding, (though the funds required will be miniscule compared to the massive inflow into manufacture of weapons) the banks ought to be in the forefront in the implementation of these projects instead of being miopically concerned with profit and loss. The fossil fuel producers and refiners, who are the worst offenders, must also part with some of their profits.

This is surely the most logical thing for the banks to do. The main reason is that all human activities and existence depend on ecological factors influencing the safety of the environment . There is a profound interconnection between all aspects of life on the Earth and from the tiniest organisms to the largest ecosystems, and humans are substantially intertwined in one way or another. In an era of globalization, therefore, business corporates including banks should recognize that we are all part of a global society and we have to learn how to make such a society work intelligently and safely. Unfortunately, we have at present no unified vision or leadership that can guide us in this endeavor. We have not yet found a method of spiritualism whereby man and nature live peacefully side by side in order to enhance the required optimism about the continuity of human civilization.

If they are also Financially Viable, yes of' course.

Any mandate forcing the banks to lend based on political considerations limits the efficiency in the allocation of resources and ultimately is detrimental to economic and social development. You may consider Hayek's argument in "The Use of Knowledge in Society" as a general rule to evaluate policy.

https://www.econlib.org/library/Essays/hykKnw.html

Best,

Leo

Dear Colleagues and Friends from RG,

In view of the above, it is also important to include the following issue in the above discussion:

Determinants of ecological transformation of financial systems.

The above discussion inspired me to formulate the following question:

Is the financial system prepared for the possible realization of a negative scenario in the future of an increasingly faster global warming process? What are the key determinants of the ecological transformation of financial systems?

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that in recent years more and more commercially functioning enterprises and financial institutions appear, which are joining the programs of financing ecological economic reforms. Commercial banks are increasingly interested in financing environmental projects, also referred to as green projects if they are profitable. In addition, green finance is an important factor in financing pro-ecological business ventures. Public institutions, government agencies as well as increasingly commercially operating investment funds and other financial institutions are involved in the financing of developmental ecological projects.

Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my previous considerations on this topic: Development of programs for financing ecological reforms from sources of commercially operating financial institutions.

In mid-December 2019, interesting information appeared in the media as follows: The Central Bank of England conducts an analysis, stress test of commercial banks what will happen with their product portfolios if the average temperature at the Earth's surface increases by as much as 4 degrees C by 2080. This is a special event that will go down in the history of the development of the concept of ecological transformation of financial systems. At present, in many countries, banking systems are not fully prepared for the possible implementation of the negative scenario of an increasingly faster global warming process in the future. Currently, only some banks add new types of loans to their credit procedures and lending policies, which are to finance the creation and implementation of economic innovations in economic processes, the implementation of large investment projects that are part of the implementation of environmental reforms in the energy sector, etc. Most commercial banks, however, do not know the effects changes in the profitability of financial investment projects on a multiannual scale, it does not have precise instruments to measure the potential negative effects of the faster and faster global warming process and the impact of this process on the economics of key clients, enterprises that may not be fully prepared for the upcoming climate changes. So far, no research has been carried out in banks to determine the impact on the quality of the loan portfolio and the profitability of the bank progressing faster in the next several decades of the global warming process. It is therefore necessary to conduct research in this area.

The climatologists' research shows that in recent years the progressing globar warming process has accelerated. Therefore, sustainable ecological development is a must. However, still few pro-ecological activities are undertaken to increase the possibilities of achieving fully sustainable pro-ecological economic development conducted in accordance with the green economy philosophy. In my opinion, sustainable ecological development is a must. It is a key challenge of the 21st century. In connection with the growing pollution of the environment, the increase in greenhouse gas emissions, the accelerating process of global warming, if humanity is interested in protecting life on Earth, maintaining biodiversity for subsequent generations, the 21st century should be the age of technology development and innovations, including ecological ones, and economic development should be implemented according to the principles of green economy, in order to achieve sustainable ecological development in the shortest possible time.

Climatologists and scientists from other fields of science, conducting research on climate change and its effects, develop long-term forecasts of these changes. These forecasts show that the continuation of the global warming process over the next few decades may lead to the thaw of permafrost at the Arctic Circle and the release of millions of tons of frozen methane. Then the global warming process will accelerate and the Antarctic meltdown will be unstoppable. The areas in which man will be able to live and live due to the melting of all glaciers and due to the drying of many areas currently covered with vegetation or used for agriculture in the tropical and subtropical zones will decrease. It is also possible to increase Earth's seismic activity, increase in volcanic eruptions. The reason may also be an increase in the activity of the Sun over a period of several dozen years, because the current activity of the Sun is low. The intensification of these processes in the second half of the 21st century is probably already inevitable. Is human therefore also an endangered species due to the increasingly rapid global warming process? If the average temperature at the Earth's surface by the end of the 21st century increases by another min. 3-4 degrees C is the scale of climate change, weather anomalies and climate disasters will be so large that the human species will be classified as endangered species.

However, humanity should try to slow down the global warming process, especially since man is responsible for the acceleration of the global warming process since the 19th century, i.e. since the industrial revolution based on the invention of the steam engine. The period of the next dozen or so years, especially the period up to around 2030, is the most important, key for introducing the necessary pro-ecological reforms, including the transition of the entire energy sector to renewable energy sources. In addition, the development of electromobility, improvement of waste segregation and recycling, development of ecological agriculture, afforestation of areas degraded by industry, irrigation of drought areas, etc. are indispensable elements of pro-ecological activities that are important elements in achieving sustainable ecological development, including the transformation of classic economics in green economy.

In my opinion, since the end of the 19th century, i.e. since the end of the industrial revolution and the beginning of the second technological revolution based on electricity, the development of pro-ecological technologies has been neglected. Sustainable ecological development should be built from the 19th century and not over 100 years later. At the end of the 19th century, the first electric battery technologies were developed. The first motor vehicles, the first Ford cars were electric and instead of developing electromobility at that time, combustion engine technologies began to be developed. Military operations of the 20th century only consolidated these unfavorable trends in the development of combustion technology. And now we are starting to experience an increasingly faster global warming process, which is the result of greenhouse gas emissions that have been increasing since the 19th century. For more than 100 years, humanity has neglected the development of pro-ecological technologies, including primarily energy based on renewable energy sources. If sustainable economic development based on green economy began to develop from the nineteenth century, now the world would look completely different and in the twenty-first century there would be no serious problems related to man-made climate change.

In line with the above, classical economy should be transformed into a green economy in accordance with the principles of sustainable ecological development, and ecological innovations should be financed from green finance sources. A very important topic for humanity and biodiversity of planet Earth. Environmental reforms are necessary to reduce the negative effects of environmental pollution and the global warming process that is moving faster and faster. The implementation of the principles of sustainable pro-ecological development is necessary to avoid a global climate catastrophe, an armageddon climate that may appear at the end of the 21st century, if the classic economy is not turned into a green economy in the next dozen or so years. There is little time left to save humanity and the biodiversity of planet Earth.

In the context of increasingly faster climate change processes, increasing pollution of the natural environment, it is necessary to implement the principles of sustainable pro-ecological development as soon as possible in accordance with the green economy philosophy and to finance pro-ecological reforms from green finance sources. National and international financing systems for the creation and implementation of pro-ecological innovations and pro-ecological reforms in many branches of modern economies should be developed, primarily in the energy sector through the development of renewable energy sources. National and international systems for financing pro-ecological reforms in the green finance formula should be developed. In my opinion, in the future, the most important pro-ecological technologies that should be improved and implemented are renewable energy technologies based on solar energy. Solar power plants should be developed. Commercial banks should grant loans for these purposes. However, for commercial financing programs to develop, the role of the state as potentially the main financing entity for large pro-ecological energy projects is also important. Similarly with nuclear energy, which is so expensive to build, that without the support of financial resources from state finances it would often not be possible to build a nuclear power plant. In commercially operating financial institutions these problems are already beginning to be noticed. In recent years, there are more and more commercially functioning enterprises and financial institutions that are joining these pro-ecological activities. Some of these institutions want to improve their image through parasocial marketing campaigns and public relations conferences. It is also good action at the beginning of the road towards moving and making society aware of the highest priority of the issue of sustainable pro-ecological development in accordance with the green economy philosophy.

Unfortunately, conventional technologies in many industries and industrial sectors still dominate in many countries. For example, in my country currently only 15 percent. electricity is generated from renewable energy sources and the remainder is 85% from traditional energy based on mineral combustion. By 2030, it is planned to increase the share of electricity production from renewable energy sources to 32 percent. This is not much considering that in many countries this plan is set at a minimum of 50 percent. energy production from renewable energy sources in 2030. In addition, an important determinant of the necessary pro-ecological reforms in the energy sector, which should be implemented in the next decade, is the problem of rapidly growing greenhouse gas emissions in recent years, the global warming process that is progressing more rapidly, and the resulting weather anomalies and climate disasters that are increasingly common including forest fires, drought in green areas and agriculture, melting glaciers, flooding in coastal areas, etc.

On the other hand, in some countries green technologies are increasingly being developed. Commercial companies and public institutions financed or co-financed from subsidies received from the state's public finance system participate in this process. These processes are usually inspired, initiated and co-financed by the state. Ecological innovations are increasingly being developed as part of the system of implementing the principles of sustainable pro-ecological economic development conducted according to the concept of green economy and projects as well as pro-ecological reforms financed from green finance funds. The development of green technologies is important because every day in many media there is more information about the growing scale of devastation of the natural environment through the development of human civilization. In recent years, environmental pollution has been increasing and the global warming process is increasing rapidly.

Research conducted for many years by climatologists confirms that the global warming process is mainly caused by an increase in greenhouse gas emissions generated by the energy sector based on classic energy generating electricity from mineral combustion and the automotive industry also based on internal combustion engines. In addition, innovations in the field of renewable energy sources should be created and implemented as soon as possible. The energy sector should be changed as soon as possible and reformed in order to develop renewable energy sources. Classic energy sources based on the combustion of minerals should be replaced by energy technologies based on renewable energy sources, i.e. first of all solar, wind, water and possibly also nuclear energy should be developed. Therefore, in the context of increasingly faster climate change processes, accelerating the global warming process, increasing pollution of the natural environment, international financing systems for pro-ecological projects should be created. Within these systems, international institutions should be created to finance projects for implementing ecological reforms, creating and implementing eco-innovation, etc. Grants should be awarded for research projects in the field of renewable energy development.

In connection with the above, it is necessary to increase expenditure in all countries on ecological reforms in order to implement the principles of sustainable ecological development according to the green economy philosophy. In addition, international financing systems for the creation and implementation of green innovations and green reforms should be developed in many branches of modern economies, primarily in energy through the development of renewable energy sources. National and international systems for financing pro-ecological reforms in the green finance formula should be developed. The next several years is the last moment to carry out the necessary ecological reforms to avoid a chain reaction of increasing climatic disasters and reduce the scale of environmental pollution and protect most of the remaining biosphere, biodiversity from irreversible degradation. Therefore, humanity should reduce greenhouse gas emissions as soon as possible, energy based on renewable energy sources, electromobility, organic farming, waste sorting, recycling, etc. should be developed. Therefore, financial outlays for creating new ecological innovations, green technologies and their implementation in industry. However, despite the obvious need to increase expenditure on renewable energy sources, unfortunately in recent years to a significant and sufficient extent as required, these expenditures do not grow in many countries.

The green economy philosophy is the essence of the processes of implementing the principles of sustainable proecological economic development. One of the key elements of these processes is the implementation of pro-ecological innovations e.g. in the energy sector to develop renewable energy sources. This development is the main factor in the implementation of pro-ecological reforms in the energy sector, the aim of which is to replace classic energy sources based on the burning of minerals with environmentally neutral energy based on renewable energy sources, including solar, wind, water and other energy. The implementation of pro-ecological economic projects requires the accumulation of financial capital. Both public institutions, government agencies as well as commercially operating investment funds and other financial institutions are involved in the financing of ecological development projects. If pro-ecological development projects become profitable ventures, then more and more commercially operating companies, corporations, banks, investment funds and other economic entities are interested in financing these pro-ecological economic ventures. Financial resources thanks to which ecological development projects are implemented are more and more often referred to as green finance. In recent years, some international and central financial institutions, such as the World Bank, have been allocating increasingly larger amounts of money for pro-ecological investments. More and more institutions are becoming propagators of the necessary introduction of the principles of sustainable development, however, the scale of actions implemented in order to promote sustainable ecological development is still too small.

Green finance is an important factor in financing pro-ecological business ventures. Public institutions, government agencies as well as increasingly commercially operating investment funds and other financial institutions are involved in the financing of developmental ecological projects.

I fully agree that in the context of increasingly faster climate change processes and increasing environmental pollution, systems for international financing of pro-ecological projects should be created. As part of these systems, international institutions should be created to finance projects for implementing ecological reforms, creating and implementing eco-innovation, etc. Grants should be awarded for research projects in the field of biodiversity protection. In Europe, the institutions that can finance such projects are, for example, European Union subsidy programs, the European Bank for Reconstruction and Development. On a global scale, the World Bank may be such an institution. However, such programs for international financing of ecological projects are still underdeveloped.

In view of the above, in my opinion, in the context of increasingly faster climate change processes and increasing environmental pollution, systems of international financing of pro-ecological projects should be created. As part of these systems, international institutions should be created to finance projects for implementing ecological reforms, creating and implementing eco-innovation, etc. Grants should be awarded for research projects in the field of biodiversity protection. In Europe, the institutions that can finance such projects are, for example, European Union subsidy programs, the European Bank for Reconstruction and Development. On a global scale, the World Bank may be such an institution. However, such programs for international financing of ecological projects are still underdeveloped.

Commercial banks are interested in financing environmental projects, also referred to as green projects if they are profitable. In many countries, commercial banks grant business loans for carrying out green projects if the borrower has creditworthiness. It is increasingly common for commercial banks to finance green projects for marketing purposes and to improve their image in the context of interbank competition. In addition, the few, globally active, large investment banks that implement certain fundamental goals of international policy, such as the World Bank, declare that in the coming years they will increase the scale of financial resources allocated for financing ecological projects. In my opinion, both large investment banks and many smaller commercial and deposit-credit banks should increase the scale of financing pro-ecological projects from year to year. This issue is particularly important in connection with the ongoing warming of the Earth's climate. Global warming is recognized by many scientific centers as one of the greatest threats to humanity and life on Earth in the perspective of the end of the 21st century. Therefore, pro-ecological projects regarding e.g. development of renewable energy sources, reduction of classic energy sources based on mineral combustion, improvement of waste segregation techniques, recycling, development of electromobility, sustainable agricultural production, environmental protection, etc. should be developed with all possible means. which finance the processes of implementing pro-ecological reform programs, e.g. in the energy sector is the state that allocates part of its funds from the public finance system Therefore, in some countries a significant part of GDP is allocated to carrying out ecological reforms and financing the development and implementation of ecological innovations in order to promote sustainable pro-ecological development in economic processes and the transformation of classical economy into a green economy.

In line with the above, in my opinion, in recent years, there are more and more commercially functioning enterprises and financial institutions which are joining the programs of financing ecological economic reforms. Commercial banks are increasingly interested in financing environmental projects, also referred to as green projects if they are profitable. In addition, green finance is an important factor in financing pro-ecological business ventures. Public institutions, government agencies as well as increasingly commercially operating investment funds and other financial institutions are involved in the financing of developmental ecological projects. Most commercial banks, however, do not know the effects of changes in the profitability of financial investment projects on a multiannual scale, they do not have precise instruments for measuring the potential negative effects of the increasingly rapid global warming process and the impact of this process on the economics of key clients, enterprises, which may also not be fully prepared for upcoming climate change. So far, no research has been carried out in banks to determine the impact on the quality of the loan portfolio and the profitability of the bank progressing faster in the next several decades of the global warming process. It is therefore necessary to conduct research in this area.

Do you agree with me on the above matter?

I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.

In view of the above, I am asking you the following questions:

- Is green finance becoming an important factor in financing pro-ecological business ventures?

- Should programs of international financing of ecological projects from green finance sources be developed?

- How should financing for development of pro-ecological technologies be developed?

- What kind of institutions should participate in the financing process of pro-ecological technologies development?

- Should commercial banks increase the scale of financing pro-ecological projects?

- Should the state co-finance the implementation of pro-ecological reform programs, e.g. in the energy sector?

- What proportion of GDP should countries allocate to implementing sustainable pro-ecological development in economic processes designed according to the green economy concept?

- How should the credit policies of commercial banks be improved in order to adapt them to the concept of green finance and the green economy philosophy?

- Should international financial institutions such as the World Bank, European Bank for Reconstruction and Development, European Central Bank etc. coordinate the largest pro-ecological development projects and increase the scale of financing pro-ecological reforms?

- Is the financial system prepared for the possible implementation of a negative scenario of a faster global warming process in the future?

- What are the key determinants of the ecological transformation of financial systems?

- The Central Bank of England conducts an analysis, stress test of commercial banks, what will happen to their product portfolios if the average temperature at the Earth's surface rises by as much as 4 degrees C by 2080. Should other central banks also order similar stress tests in their countries?

What do you think about this topic?

What is your opinion on this topic?

Please reply

I invite you to discussion

thank you very much

Best wishes

Dariusz Prokopowicz

Dear Chandrasekhar Morampudi, Anjay kumar Mishra, Nazir Ali, Reza Biria, Emmanuel V Murray, Leonidas Zelmanovitz, Hello everyone, thank you for participating in the discussion. Thank you very much for participating in this discussion and providing inspiring and informative answers to the above question: Should commercial banks increase the scale of financing pro-ecological projects?

I am glad that the above issue is basically fully compatible and the answer to the above question is affirmative. A very correct remark in terms of content. Thank you for the proposed interesting topic in the above-mentioned issues. Your statements confirm that the above-mentioned issues are current and developing. This discussion confirms the importance of the above-mentioned issues and the legitimacy of developing research on this subject. In view of the above, in my opinion, in recent years the importance of commercial banks in financing pro-ecological projects. Best wishes,

Have a nice day,

Dariusz Prokopowicz