The terms green financing and greening finance, used in two different senses in English, are not translated into Turkish. However, the concepts of finance and financing have been brought as the closest meaningful equivalent. Companies will need more resources as government policies and social behaviors are equipped with more environmentally friendly practices. These two concepts, which are encountered while researching international sources and starting to make a significant difference, are not precisely different fields.
While greening financing means financing environmentally friendly projects and companies, greening financing means aligning financial systems with environmental sustainability goals. Green financing refers to many financial instruments. For example, It includes a wide range of financial products and services such as green bonds, loans, and equity investments. On the other hand, green financing provides a transition to many solutions, such as low carbon, by creating financial resources for sustainable projects and companies. The aim here is to accelerate the growth of companies and institutions to environmental movements. Greening finance includes a wide variety of financial products and services. With green financing, product development can be done by doing more R&D research, and at the same time, it is ensured that environmental factors are integrated into financial risk assessments. It is desired to increase companies' and governments' transparency and accountability habits.
In both economic parameters, environmental factors are integrated into financial risk assessments. In both areas, greenhouse gas emissions are reduced, and natural resources and biological diversity are protected.
As a result, the interest in the green economy remains the same as climate change increases environmental and financial risks. By making sustainable investments, companies want to reduce the effects of climate change. Climate change, becoming more apparent daily, will soon pose a significant danger to companies and reduce their production capacities and service areas. Therefore, both green financing and economic capital provided by green financing have become essential for companies.
Author:
Bugce Agca
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