What forms of external financing of pro-climate and pro-environmental economic ventures within the framework of green finance dominate now and will dominate in the future?
In recent years, various forms of financing pro-environmental business ventures within the framework of green finance have been growing in importance.
Within the framework of green financing of pro-environmental and pro-climate economic ventures, e.g. in the development of renewable and emission-free energy sources, improvement of energy transmission and storage systems, development of sustainable organic agriculture, improvement of waste sorting and recycling systems, construction of wastewater treatment plants and recovery of clean water, development of electromobility, zero-energy construction, etc. Commercial banks offer green loans, internationally operating investment banks and investment funds provide financing combined with equity participation in green investment, enterprises and companies provide green loans to their subsidiaries, the state offers green subsidies offered by government agencies as part of programs to activate the green transformation of the economy. At the UN Climate Summit COP27 in Sharm el-Sheikh, Egypt, which began on 6.11.2022, discussions are expected to focus on financial needs and commitments, financing pro-climate and pro-environmental business ventures within the framework of green finance, and shaping the tools needed to respond to the damage that climate change is causing. At the aforementioned COP27 Climate Summit in Egypt, delegates from nearly 200 countries are holding lectures and discussions on the issue of financial compensation to poor countries for the growing damage from global warming. This is a new topic on the agenda, appearing at the UN Climate Summit COP27 for the first time in a decade, i.e., since the start of such conferences and climate talks. At last year's UN Climate Summit COP26 in Glasgow, Scotland, one of the new topics and agreements was a commitment to end forest deforestation by the end of the current decade, i.e., by 2030. However, in connection with the new agenda topic that emerged at UN Climate Summit COP27, viz. the issue of financial compensation to poor countries for the growing damage of global warming is an important issue that needs to be elaborated is the identification of key sources of financing, types of external financing within the framework of green finance, clarification of the objectives of financial support, i.e. the key types of negative effects of the progressive global warming process in countries characterized by low levels of economic development, low incomes and the ability to implement pro-climate and pro-environmental economic projects on their own. First of all, most of the poor countries, characterized by low income and low level of economic development are located in the tropical and subtropical climate zones and therefore in zones particularly vulnerable to the negative effects of climate change. In these countries, the problem of droughts is intensifying, and they are becoming more severe and prolonged every year. Droughts, declining rainfall, declining supplies of clean water are serious problems for agriculture, causing a decline in the production of agricultural crops and a growing problem of food shortages. In a large part of the mentioned poor countries, large-scale predatory logging has been implemented in recent years, the scale of deforestation has significantly increased, including natural biodiverse forest ecosystems, various forest formations, including, among others, the largest natural complex of forest ecosystems, known as the lungs of the planet, i.e. the rainforests of the Amazon. In this regard, it is a necessary issue to increase the scale of international cooperation and assistance regarding the transfer of green technologies, capital to enable the pro-environmental and pro-climate transformation of the economy, the realization of sustainable development goals, the implementation of investments enabling the development of renewable and emission-free energy sources, etc. Rich countries (mainly of the north, temperate climate zone), characterized by a high level of economic development, high incomes, high levels of productivity and equipment of production processes with modern technologies should help poor countries (of the south and the tropical, subtropical climate zone) to a greater extent, to reduce the scale of disparities, differentiation in the issue of sustainable development, activities and investments implemented to carry out pro-climate transformation of the economy and reduce the scale of the negative impact on the economy, agriculture and people of the progressive process of global warming and reduce the scale of the operation of the negative effects of this process. This is a key issue of international cooperation for the implementation of the concept of sustainable economic development, taking into account environmental, climate and energy policies on an international scale. The problem of global warming is a global problem and should be solved on a global scale through the development of international cooperation. This is part of the developing pro-climate and pro-environmental globalization.
In view of the above, I address the following question to the esteemed community of researchers and scientists:
What forms of external financing for pro-climate and pro-environmental green finance business ventures are dominant now and will be in the future?
What forms of external financing of pro-climate and pro-environmental economic ventures within the framework of green finance currently dominate internationally?
What are the international forms of external financing of green economic transformation?
What do you think about this topic?
What is your opinion on this issue?
Please answer,
I invite everyone to join the discussion,
Thank you very much,
Best regards,
Dariusz Prokopowicz
Dear Darius we ask questions with our idealogy in vision .
We must instruct / dictate on our politicians for actions we can see needed.
It's democracy they are in not in Kingship ruling by knights might power, the Right of voice and right of expression we must exercise.
I can see another wasted slot of : time, money and caused further political shamble not into resolving conflicts.
Fatema
In the COP27 after all they came up with term Action.
Action what we were saying for years and I been urging for Action .
The compensation they talking about, for the loss and damage . Yes, I agree and I believe so do you .
UK agreed to it's pledge, and 1.7 Billions to be given for the cause. I strongly say not to give the funds to those nations leaders; not to Pakistan, not to Bangladesh or India, and neither to African countries leaders.
Action taken . Good
There need a good team work . A plan must be in place immediately for task force.
UK and Europe , must take on responsibility and work on task, to form an organisation task force for climate pledge.
I explained in my book
Action plan Climate Solution.
Justice I say:
For general ordinary people.
Protection of land and biodiversity.
Migration plan of reshaping a map of earth's habitable geography.
https://youtu.be/WtqVLm-M0ak
Water I mentioned is the prime factor of climate danger.
Water solution task must be worked in immediately. There needs water solution plan, an agreement of share and passing of water between Central Asia, Russia through Mediterranean, Africa to Europe. Certainly the seawalls must be put on for land protection.
I previously, thought and wrote about Saudi Arabia envelopment, and towns and regions buildings of their planes, for migration as Climate resolution.
The funding can be used for the climate solution work under Green Economy and at the same time for creating jobs on the task force. I propose global job market, with all kinds of skills levels jobs.
Justice and equality.
Regards
Fatema Miah
Green external financing can be direct or indirect: Direct is a connection between two parties between borrowers and lenders without the intervention of a financial intermediary in exchange for credit risk guarantees, and the loan is in the form of financial instruments or direct securities such as green shares and bonds. And indirect green external financing is done through a financial intermediary such as commercial banks, insurance companies, savings and loan associations to finance green projects
The predominant forms of external financing for pro-climate and pro-environmental economic ventures in green finance include:
It's important to note that the landscape of green finance is constantly evolving, and new instruments and approaches may have emerged since the last update. As of 2023, I recommend checking with financial institutions, sustainable finance organizations, and industry experts for the most up-to-date information on the predominant forms of external financing for pro-climate and pro-environmental economic ventures in green finance.