Green finance delivers economic and environmental benefits for all. It expands access to environmentally friendly goods and services for individuals and businesses, smoothing the transition to a low-carbon society, leading to more socially inclusive growth. This results in a “great green multiplier” effect that benefits both the economy and the environment, making it a win-win situation for everyone.
What are the benefits?
Encourages the diffusion of technology and the development of green infrastructure
Governments in developing countries are building infrastructure that will improve long-term resource management, increase the country’s competitiveness, and channel private sector money into local green markets.
Creates a comparative advantage
In response to the growing challenges posed by climate change and other environmental and economic issues, low-carbon development may inevitably move from a voluntary to a mandatory strategy. Expanding green finance will give you a competitive advantage as environmental regulations tighten.
Adds value to the business
Businesses can increase the value of their portfolio by increasing (and advertising) their participation in green finance. This offers their company a green edge, attracting more environmentally concerned investors and customers.
Improves economic prospects
Governments that promote green finance help protect their societies from resource scarcity. They do this by creating and encouraging local renewable energy markets, as well as expanding into new markets with high employment potential.