What is the role of green non-refundable financial subsidies provided from the state's public finance system in the context of green financing, green lending by commercial banks, etc.?
If there were significantly more available green non-repayable subsidies would you significantly increase the scale of your personal pro-climate and pro-environmental activities?
If non-refundable green grants or no-cost, state-subsidised green loans were significantly more accessible to citizens, would you significantly increase the scale of your personal pro-climate and pro-environmental activities?
In recent years, various forms of green finance, green financing within the framework of the development of green banking, green investment funds supporting the implementation of green economic ventures, playing an important role in the process of green transformation of the economy, are being developed.Nowadays, in financial institutions, commercial banks and investment funds, which add to their missions the issue of achieving the goals of sustainable development, protection of the climate and the planetary biosphere, considerations arise on how the structure of green financing for the implementation of green economic ventures should be formulated. On the other hand, public institutions involved in the implementation of certain climate and environmental policies are also trying to find a common denominator between the issue of selecting the type of green economic projects to be financed and the issue of selecting a certain green financing formula, i.e. the structure of the type of financial instruments, including green public finance, green credit, green corporate finance involved in supporting the implementation processes of pro-environmental and pro-climate economic projects. In view of the above, on the one hand, many companies, enterprises, financial and public institutions make decisions concerning the selection of specific currently applied forms of green financing for pro-environmental, pro-climate and sustainable business projects. On the other hand, a growing number of economic entities and institutions are considering both the issue of various types of green business projects, green investments and the choice of forms of green financing within the framework of financing carried out by commercially operating companies and enterprises, as well as green financing within the framework of non-refundable grants or loans granted on preferential terms from the system of public finances of the state and granted within the framework of programmes implemented within the scope of the developed environmental and pro-climate policy. The key determinants of the choice of forms of green financing for the implementation of green economic ventures, including, inter alia, new green investments, economic ventures implemented for the development of renewable and emission-free energy sources, to accelerate the process of green transformation of the energy sector, to counteract the progressive process of global warming and to reduce the scale of the global climate catastrophe are primarily the issue of financing costs and the availability of financial resources also in the form of non-refundable financial grants and coming from various sources, including from the system of public finances of the state within the framework of the developed environmental policy. The non-refundable grants offered to citizens as part of green financing can play an important role in the scale of implementation of green economic ventures, including, inter alia, new green investments, economic ventures implemented to develop renewable and emission-free energy sources, to accelerate the process of green transformation of the energy sector, to counteract the progressive process of global warming.
In view of the above, I address the following question to the honourable scientific and research community:
If there were significantly more available green non-refundable subsidies would you significantly increase the scale of your personal pro-climate and pro-environmental activities?
If there were significantly more green non-refundable subsidies or no-cost, state-subsidised green loans available to citizens, would you significantly increase the scale of your personal pro-climate and pro-environmental activities?
In the context of green financing, green lending by commercial banks, etc., what is the role of green non-refundable financial subsidies provided from the state's public finance system?
What is the magnitude of the importance of green subsidies in terms of the smooth implementation of the green transformation of the economy?
What do you think?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Warm regards,
Dariusz Prokopowicz
Green subsidies are becoming increasingly important in helping to make the transition to a greener economy happen smoothly. As the world's three major economic blocs compete for a slice of the new green economy, they are driving down costs and making it easier for businesses to invest in green technologies. In addition, green subsidy schemes encourage private-sector climate action, while also helping to level the playing field between developed and developing countries.
The US and EU have both taken steps towards incentivizing green investments with their respective Inflation Reduction Act (IRA) of 2022 and Green Deal initiatives. These plans offer billions of dollars in tax breaks and subsidies that can help spur investment in renewable energy sources, electric vehicles, batteries, and other green technologies.
Overall, green subsidies are an essential part of making the transition to a greener economy happen quickly and efficiently. By providing incentives for businesses to invest in clean technologies, governments can ensure that the global community is able to meet its climate goals while also creating jobs and boosting economic growth.
Sources
- https://www.reuters.com/breakingviews/green-subsidy-race-may-be-what-world-needs-2023-02-06/
- https://www.weforum.org/agenda/2023/03/what-do-green-subsides-mean-for-the-future-of-climate-and-trade
https://www.oecd.org/coronavirus/policy-responses/making-the-green-recovery-work-for-jobs-income-and-growth-a505f3e7/
https://www.unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-economy
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