By Gabriela Wyszynska, Climate and Sustainability Reporter
It’s estimated that one to two trillion dollars a year is needed to achieve net-zero by 2050. With COP26 happening, the UK has an opportunity to show leadership in financing the transition to net-zero.
Photo: Gabriela Wyszynska
In simple wording, Green Finance is any structured activity or investment that provides environmental benefits. A key part of this is to better manage environmental and social risks, and to take up opportunities that bring both a decent rate of return and environmental benefits. With climate change as the biggest issue today, Green Finance is crucial to transform the global economy into being sustainable and resilient.
The experts say that the UK is not currently on track to meet its own emissions targets.
Source: ITV
New rules brought by the Treasury ahead of COP26 will require businesses and public sectors to disclose their environmental impact, stating out clearly their net-zero transition plans.
The requirements will also apply to investment products and pension schemes.
The aim is to combat “greenwashing”, where companies make misleading claims about their environmental commitments.
Souvik Kumar Ghosh, a principal consultant at DNV, has spoken with The Byte about the challenges that governments, NGO’s and private sectors have to face to apply green finance.
DNV is a global classification society, headquartered in Norway, which certifies management systems of companies across all types of industries.