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The Development of Green Finance by Sector

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The Rise of Green Finance in Europe

Part of the book series: Palgrave Studies in Impact Finance ((SIF))

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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Notes

  1. 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. 2.

    See also Chap. 1.

  3. 3.

    http://www.gabv.org/the-community/members/banks

  4. 4.

    www.gabv.org/about-us

  5. 5.

    https://www.unepfi.org/banking/bankingprinciples/

  6. 6.

    For more information on the initiatives in the EU to foster sustainable finance, see Chap. 6.

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  1. University of Waterloo, Waterloo, ON, Canada

    Olaf Weber & Amr ElAlfy

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  1. Olaf Weber
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Correspondence to Olaf Weber .

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  1. IAE Université Paris 1 Panthéon-Sorbonne (Sorbonne Business School), Paris, France

    Marco Migliorelli  & Philippe Dessertine  & 

  2. European Commission, Brussels, Belgium

    Marco Migliorelli

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Weber, O., ElAlfy, A. (2019). The Development of Green Finance by Sector. In: Migliorelli, M., Dessertine, P. (eds) The Rise of Green Finance in Europe. Palgrave Studies in Impact Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-22510-0_3

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