Page 17 - Green Finance 2024

buildings, lead to significant health benefits by reducing pollution-related diseases and

enhancing urban livability.

- Facilitating regulatory compliance and access to capital, including: (1) Alignment with

global standards and regulations: As international environmental regulations become

more stringent, green finance enables businesses to align their operations with global

standards, thereby avoiding penalties and benefiting from incentives for sustainable
practices. This alignment is critical for companies operating in multiple jurisdictions and

serves as a foundation for sustainable international trade; and (2) Enhanced access to

capital: Green finance improves companies’ access to capital by attracting investors who

are increasingly mandated to consider environmental, social, and governance (ESG)

criteria in their investment decisions. Funds that focus on sustainability criteria are
growing, as evidenced by the rapid increase in ESG assets under management. This trend

provides a fertile ground for companies with strong sustainability profiles to secure

funding.

- Strengthening Energy Security and Climate Resilience, including: (1) Energy security
through renewable investments: Investments in renewable energy projects, which are a

core component of green finance, enhance national energy security by reducing

dependence on imported fossil fuels. This diversification of energy sources helps

countries to stabilize energy prices and reduce susceptibility to external shocks or

geopolitical conflicts; and (2) Building climate resilience: Green finance is essential for
funding infrastructure that can withstand the impacts of climate change, thus enhancing

the resilience of economies to extreme weather events and environmental changes. By

financing the development of resilient infrastructure, green finance reduces the economic

and human costs of climate-related disasters.

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