The Role of Financial Institutions in Green Economy Transition Flashcards
What is the green economy?
An economic system that reduces environmental risks and ecological scarcities while promoting sustainable development.
How does UNEP describe the green economy?
As one that improves human well-being and social equity while significantly reducing environmental risks.
Why is transitioning to a green economy crucial?
It ensures sustainable development by embedding environmental considerations into economic planning and decision-making.
What are key benefits of a green economy transition?
Mitigating climate change
Conserving natural resources and biodiversity
Enhancing energy security via renewables
Creating new jobs in green sectors
How does the World Bank view the green economy?
As a new engine of growth, a net generator of decent jobs, and a vital strategy for poverty elimination.
How does the financial sector support the green economy?
By mobilizing and allocating financial resources to green investments.
What financial products support green projects?
Green bonds
Sustainable loans and mortgages
Impact investing
ESG funds
What is the significance of ESG criteria?
They influence corporate behavior toward sustainability by integrating environmental, social, and governance factors into investment decisions.
What is the catalytic role of the financial sector?
It directs economic development through investment choices, reducing the environmental footprint of economic activities.
What is PRI (Principles for Responsible Investment)?
A UN-supported initiative promoting responsible investment to influence economic actors.
What is a green bond?
A financial tool that raises capital for projects with environmental benefits.
What are key international agreements supporting the green transition?
Paris Agreement (climate change mitigation)
Sustainable Development Goals (SDGs)
Kunming-Montreal Global Biodiversity Framework (biodiversity protection)
How do national policies support green finance?
By setting guidelines for green bonds, investment funds, and incentives for sustainable projects.
How does carbon pricing work?
Through mechanisms like carbon taxes or cap-and-trade systems that incentivize emission reductions.
What is a major challenge in scaling up green finance?
Mobilizing sufficient capital to meet global sustainability targets.
How can public-private collaboration help?
By developing innovative financing mechanisms and boosting investments in sustainable projects.
How do governments support the green economy?
Through policymaking, regulation, funding R&D, and subsidies for green projects.
What role do NGOs play?
Advocacy, awareness, project implementation, and holding corporations accountable.
How do international organizations contribute?
By setting global policies, offering funding, and providing technical assistance.
How do research institutions aid the green economy?
By innovating sustainable technologies and educating future leaders on sustainability.
