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Published in:
An Overview of Green Finance Read chapter Read first chapter

2019 | OriginalPaper | Chapter

3. The Development of Green Finance by Sector

Authors : Olaf Weber, Amr ElAlfy

Published in: The Rise of Green Finance in Europe

Publisher: Springer International Publishing

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Abstract

This chapter analyzes the development of green finance by sector. To this extent, it first examines the role of multilateral development banks in launching and fostering green finance and sustainable finance. Hence, it assesses the approaches adopted by industrial companies to embrace sustainable finance, in particular as concerns the implementation of sustainability and environmental reporting. Finally, it deals with the greening of private financial institutions (in particular, banks), underlying their crucial role in facilitating the development of green finance.

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previous chapter Defining Green Finance: Existing Standards and Main Challenges
next chapter Sustainable Finance Management
Footnotes
1
Given the significant market failures involved in shifting investment into sustainable infrastructure in particular in the Caribbean and in Latin America, and the fact that the region is in the midst of an economic downturn, development banks are essential to filling a USD 260 billion dollar annual infrastructure gap and a USD 110 billion dollar annual gap in financing for climate change (Yuan and Gallagher 2015). MDB may play a significant role to achieve the Sustainable Development Goal (SDG) 7 on infrastructure and SDG 9 on energy by investments in sustainable infrastructure and renewable energy. In this respect, Bhattacharya et al. (2015) argue that development banks can play an essential role to help move nations and regions from “business as usual outcomes” to “sustainable infrastructure outcomes”. Finally, MDB can help domestic financial institutions to integrate sustainability into their business by making financing dependent on the implementation of social and environmental sustainability guidelines for banks. IFC is already coordinating the development of financial sector sustainability regulations in some emerging countries and should continue to do so to support the sustainability case for the financial sector (Oyegunle and Weber 2015). For more details on the Sustainable Development Goals, see Chap. 1.
 
2
See also Chap. 1.
 
6
For more information on the initiatives in the EU to foster sustainable finance, see Chap. 6.
 
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Metadata
Title
The Development of Green Finance by Sector
Authors
Olaf Weber
Amr ElAlfy
Copyright Year
2019
Publisher
Springer International Publishing
Book
The Rise of Green Finance in Europe

Print ISBN: 978-3-030-22509-4

Electronic ISBN: 978-3-030-22510-0

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-030-22510-0_3