What is Green Finance?
Green Finance is a phenomenon that combines the world of finance and business with environmental behavior. It is an arena for many participants, including individual and corporate consumers, producers, investors and financial creditors. Green Finance can be expressed differently depending on the participant and can be guided by financial incentives, the desire to preserve the planet or a combination of both. In addition to demonstrating proactive environmental behavior, such as promoting mass transit or recycling of used goods, Green Finance avoids promotion of any business or activity that could be harmful to the environment now or for future generations.
Financial institutions that extend loans to individuals, small businesses or large corporations can do an environmentally friendly way. In this type of green finance, for example, loans are used to promote renewable energy. The creditor could finance the thvoj solar power plant that creates a power supplyfrom the sun and panels installed on the roof of a building or residence. The production of wind energy is another type of business that would gain kindness with green financiers. These companies develop expensive wind farms that use large land and sea turbines to capture the wind and generate energy.
energy manufacturers who use fossil fuels, including coal, are unlikely to participate in any kind of green finance. Coal is a traditional source of energy that releases emissions into the air, substances that are largely considered harmful to the environment. As a result, coal manufacturer is a type of company that a participant in green finance would probably avoid. Clean coal issues fewer emissions, but may never be classified as a green investment.
Another way to encourage green finances is to offer environmental incentives to load a semiramence. SmallBusinesses that are not even in the business of clean energy can participate because it is an extremely proactive form of green financing. For example, a company that sells vehicles can focus on the sale of cars that are designed to use hybrid fuel combining fossil fuels and renewable energy. For example, this company could offer customers a motivation to buy a car and in exchange for every vehicle sold, the seller buys and plant a tree to support a clean environment.
Risk capitalists or companies that expand funding to start -ups for growth actively participate in green finances. Many pure energy companies are behind discovery technologies that are expected to create a larger part of world power in the future. Risk capitalists specialize in risk and developing technologies and, as a result, tend to have a hand in green financing.