The urgency to preserve our environment is growing, especially with the worsening effects of global warming. Green investments are a key solution to this crisis.
As the world experiences rapid economic development, it's crucial to consider environmental impacts when investing. Green investment involves directing financial resources towards projects that benefit the environment.
Why Green Investment?
There are several compelling reasons why green investment is a priority for countries:
- Combating Climate Change
Investing in sustainable projects like renewable energy helps reduce greenhouse gas emissions, the main driver of climate change. This supports the goals of the Paris Agreement, particularly the target of limiting global warming to 1.5°C.
- Achieving Sustainable Development Goals
Green investments support the 17 Sustainable Development Goals (SDGs) adopted in September 2015 by financing sustainable infrastructure and clean technologies, improving community life.
- Creating Job Opportunities
Green investments drive companies towards sustainable solutions, creating new jobs and skills, and fostering a low-carbon economy.
- Enhancing Corporate Strategies
Green investments encourage companies to adopt strategies that mitigate and adapt to climate risks, improving efficiency, promoting sustainability awareness in the industry sector, and encouraging corporate innovation.
- Boosting Financial Returns and Consumer Confidence
Consumers prefer products from companies that prioritize sustainability and environment protection, enhancing the marketability and profitability of such companies.
COP29
The 29th session of the Conference of the Parties on Climate Change (COP29) will be held in Baku, Azerbaijan, from November 11 to 22, 2024. The conference will feature numerous pledges and announcements, including the launch of the Green Rulebook, a set of standards for sustainable investment endorsed by over 100 countries.
On November 14, COP29 will host Finance, Investment, and Trade Day, aiming to combat climate change. The Climate Finance Action Fund is expected to be launched during this event.
