Climate Change and the Green Finance Movement
By admin September 13, 2016

Tags: ,


President Obama recently stated his fears in the increasing threats posed by climate change. Scientists and researchers from the National Oceanic and Atmospheric Administration – using historical records of rainfall and computer models – have stated that global warming has increased the chances of floods and heavy rains by at least 40 percent. The main challenge in terms of demonstrating the disastrous affects of climate change is that it typically does not show up as a single event, but quoting President Obama tends to be a “slow-moving issue that, on a day-to-day basis, people don’t experience and don’t see”.

Today’s economies show increasing growth in global income, but are continuously followed by a decline in natural capital – which plays an essential role in sustaining lives, infrastructure, and societal wellbeing. While environmental degradation and destruction is slowly showcasing its consequences causing massive disruptions to millions of people, there is increasing need of sustainable solutions to be undertaken.

Last December in Paris, the posing threats of climate change have brought Governments from 195 countries to adopt the first universal climate agreement, aimed at reducing greenhouse gas emissions as a common response and action against global warming. In addition, more recently the G20 Green Finance Synthesis Report has been launched under China’s Presidency of the G20 Summit, with the aim of identifying “institutional and market barriers to green finance and developing sustainable options to finance environmentally sustainable growth.” The report was well recognized and welcomed by the Group of 20 Finance Ministers and Central Bank Governors during the G20 Summit in Hangzhou, China.

In the last decades, countries like China have experienced fast growth and increasing per capita income to the detriment of the environment, contributing to lethal levels of air pollution and contaminating land and water. However, it seems there has been an important shift in favor of the environment as rapidly emerging economies, such as China, begin to take important decisions towards a more sustainable global economy.

On August 30, President Xi Jinping supervised over a decision taken by the People’s Bank of China and other government agencies to issue the“Guidelines for establishing the Green Financial System”. The latter addresses the increasing environmental threats offering an integrated policy package, which include solutions such as financial instruments, green development funds and carbon finance that represent China’s stepping stone towards the creation of a green economy.

Green Finance has shifted to the core of economic-development strategies, being recognized as a driver of environmentally sustainable growth globally, and was recently discussed in the G20 policy agenda aimed to promote sustainable, strong and balanced economic growth. As environmental issues begin piling up, and countries worldwide face the challenges resulting from the social and economic burden it poses, implementation of these key visions will be crucial to shaping a global economy that is sustainable for the people and planet as we move forward.

For more information:

Year of Green Finance 2016

The G20 Embraces Green Finance

Prosperous lands and positive rewards through sustainable land management

G20 Finance Ministers recognize role of Green Investment for Sustainable Growth

Obama on Climate Change: The threats are terrifying

Scientists see push for climate change in Louisiana Flooding

Ecosystems and Human Well-Being – Desertification Synthesis

Thanks for sharing !

Comments are disabled.