Abstract
Green economic growth and sustainable development is primarily a response to the challenges associated with global warming, the risks of an increase in the number and resources of natural disasters. Governments in many countries have become more active in taking action on renewable energy sources and immediate response to the threat of climate change. Today the global green finance market is developing at an accelerated pace. This article analyses the characteristics and prospects for the development of green finance. The purpose of the article is to propose new strategies at the state and corporate levels, and the application of green financing’s new instruments. The article examines opportunities for a green transition for companies and the identification of challenges that may arise in doing so. The article identified the advantages and disadvantages of new green finance instruments and institutions, in particular, green bonds and green funds. The need for more active participation of countries with developing and emerging markets in promoting green initiatives at the global level is identified.
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Acknowledgements
This paper is written within the framework of participation in the second international scientific and practical conference “Climate Change in Industry 4.0”.
Recommendations
Governments need to intensify their efforts to apply appropriate green financial mechanisms, for example, speed up investments into infrastructure and renewable energy sources.
Green bonds can rightfully be considered as one of the most affordable and cost-effective options for helping to attract large sums of capital for infrastructure development following environmental goals.
Governments need to develop incentive structures at both the national and subnational levels to create a favourable environment for investments in renewable energy sources.
Governments, together with their development partners, should design funding models that strengthen strategic partnerships between stakeholders in order to pool financial resources and at the same time reduce risk and increase investment in renewable energy.
Once the issue of climate change attracts the necessary attention from the public, governments, and international organizations, only then will alternative business practices be possible.
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Babaev, V.Y. (2023). Green Financing as a Tool to Fight Climate Change. In: Popkova, E.G., Sergi, B.S. (eds) Current Problems of the Global Environmental Economy Under the Conditions of Climate Change and the Perspectives of Sustainable Development. Advances in Global Change Research, vol 73. Springer, Cham. https://doi.org/10.1007/978-3-031-19979-0_5
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