Green Banking and the PM’s Clean Green Initiative

To drive clean growth, third-world countries need the correct type of investment while tackling the effects of climate change.

And now, there’s a new initiative that allows us to deliver an honest, responsible investment and cleaner, more reliable infrastructure in the developing world.

Boris Johnson’s unveiled a plan to enhance green investments in emerging markets. The PM’s new initiative ‘Clean Green Initiative’ (CGI) was launched at the 26th annual summit (COP26) to help third-world countries seize eco-friendly growth and boost their economies environmentally. The new climate funding sets out to help nations embark on a greener, cleaner future.

What’s the Clean Green Initiative?

Its goal is to increase private investment in environmental and low-carbon infrastructure across the globe.

The PM announced at the COP26 that third-world countries will be given £3 billion to fund green technology schemes over the next few years. Hopefully, the Clean Green Initiative will encourage economic growth and combat global warming.

Boris declared he wanted to see the “UK’s Green Industrial Revolution go global,” and went on to say that:

“The climate has often been a silent victim of economic growth and progress – but the opposite should now be true. Through the Clean Green Initiative, we can help to build back better and greener from the pandemic and put the world on the path to a more sustainable future.”

What’s included in the initiative? 

As mentioned above, the CGI aims to finance developing countries with over £3 billion across the next five years, including a preliminary £200 million Climate Innovation Facility. This figure is two times the amount the UK’s development finance institution (CDC) put into climate change projects between 2017-2021. This amount will support the scale-up of technologies, so developing countries manage the effects of climate change. 

This may involve initiatives that help tackle droughts and unsustainable forestry. 

Private Infrastructure Development Group (PIDG), a multi-donor organisation, will invest over £210 million to boost a range of sustainable schemes in developing nations, including:

• Green bonds in Vietnam 
• Electric-powered transport engineering in India
• Solar energy in Pakistan, Burkina Faso, Chad, and Nepal 

Altogether, the schemes may rally over £247 million in extra private sector funds.

Also included in the project are new pledges to international financial institutions to make sure climate-based schemes are implemented across Africa and India.

The UK will launch an initiative to aid African countries to enhance adaptation approaches against global warming, known as the ‘Room to Run’ guarantee (a promise to the African Development Bank (AfDB).

What’s more, an India Guarantee will finance £750 million for green projects all over India. The PM will work alongside his Finance Advisor for COP26, Mark Carney, through the CGI, to facilitate these projects and other collaborations, 

What’s the aim?

The aim behind the scheme is to globalise the initiative, as all nations should benefit from clean technology and infrastructure and be involved in saving our planet.

The Clean Green Initiative encourages everyone to work towards a greener future and get back on track after the pandemic. When tackling ecological issues, it’s vital to work with companies, as this could secure a lot of funding.

But, how does green banking fit in with all of this?

What’s green banking?

Ethical banking’s become a catchphrase in the banking industry nowadays. 

Essentially, green banking is any kind of banking from which a nation or country gets eco-friendly benefits. A traditional bank turns into a green one if it takes its main functions and focuses on improving the planet. 

In other words, the term means creating wide-ranging banking strategies that go beyond banking – they promote sustainable practices, too. 

Banking can offer these eco-friendly financial services by implementing green finance to encourage sustainability in the below fields:

• Offering investment products that support investor values, like carbon offsets and energy quotas. 
• Lending to planet-conscious individuals and firms.
• Cutting down operational emissions through operations. 

For instance, if a bank gives financial help to start-ups and small, local companies as part of its mission statement, it’s contributing to green banking. Ethical banking abides by green values and principles that override the yearning to make revenue. 

Sure, green banks are businesses wanting to profit, yet, they balance their shareholders’ interests with those of society, too. 

Green banks also endeavour to develop strong, financially robust communities and are straightforward in their communications with people and the communities. 

The UK’s top three green banks

1. Co-op

Launched with sustainability at its core, the Co-Operative Bank was the first high-street bank with a customer-focused ethical policy and one that’s been moulded by millions of customers. 

It wants to develop a greener future for the younger generation and seeks to stimulate momentous change by supporting and endorsing cooperative projects across the economy.  

2. Triodos Bank

Triodos Bank is arguably one of the world’s most sustainable banks. It invests in diverse areas, such as human rights, health and safety, and governance, rejecting businesses that abuse human rights or those heavily involved in conflict minerals, such as gambling, tobacco, weapons, alcohol, and pornography.

3. Starling Bank

Another famous bank devoted to ethical practice is Starling Bank. It’s committed to building partnerships with premium suppliers and creates a green setting that concentrates on fair treatment. It prioritises technology investments and ventures to ensure that technology advancements are distributed fairly throughout society.

Tying it all up

When it comes to seeking an ethical bank for your money, you’ll need a green bank that also provides customer service, savings accounts, and other pieces of information that are appropriate to you, as the green consumer.

Many banks are involved in unethical investment policies, fossil fuel organisations, and environmentally harmful practises such as tax havens policies and palm oil. But it’s important to note that companies in the banking industry are striving to develop better ways to bank and bring about positive changes for problems like global warming.

Contact us

Whether you’re a candidate looking for a position within an ethical ban, at a planet-conscious start-up, or are an employer wanting to find your next candidate, Market Talent can help. Give us a call on  020 7971 7700 or email us at info@markettalent.co.uk.