What is green finance’s role in the Covid-19 recovery?
(Eco Business, 29 Jun 2020) From steering consumer spending to beefing up disclosure requirements, governments, central banks and financial institutions each have a role to play in ensuring a green recovery.
Governments, central banks and financial institutions each have a role to play in ensuring that massive stimulus packages rolled out to revive Covid 19-stricken economies are channeled into green projects, said finance and responsible investing experts.
Because the carbon and environmental footprint of many investments, especially infrastructure projects, will be locked in for the next few decades, it is important they are designed to be low-carbon from the start, said Dr Ma Jun, director of Tsinghua University’s research centre for green finance development in China.
In a keynote address at the recent United Nations Virtual Forum on Responsible Business and Human Rights, Ma noted that a significant amount of government spending is to stimulate consumption—dishing out coupons to consumers to spend on goods and services, for instance.