Green Finance is Key to Transitioning to a Low-Carbon Economy

Steve Bailey
4 min readFeb 18, 2023

Invest with Impact to Achieve Net-Zero

Photo by Towfiqu barbhuiya on Unsplash

“It’s time to stop burning our planet, and start investing in the abundant renewable energy all around us.”

Antonio Guterres, UN Secretary-General

What is Green Finance

If we want to keep as much of our beautiful planet as we can, then we need to turbocharge ‘green’ finance. The financing of innovative technical solutions that will help us transition to a lower carbon economy is a crucial element in humanity’s fight against climate change. Investing in innovative technology is not the only benefit green finance can earn, funding activities that support incremental improvements on existing technologies such as solar or wind will support reducing emissions. The below sentence is a more succinct description of what green finance is.

“Simply, green financing is a loan or investment that supports environmentally-friendly activity, such as purchasing environmentally-friendly goods and services or building environmentally-friendly infrastructure.”

Sarah Wire, Senior Sustainability Manager, Lloyds Banking Group