How asset management can support green financial offerings?

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Green fiscal funds: — In 1995, an initiative was launched by Dutch banks that benefited by purchasing shares in a green fund or investing money in a green bank. Payment of capital gains tax was exempted from citizens to receive a discount on income tax. Investors, as a result, accepted a lower interest rate on their investment, and green loans were offered by banks at a lower cost.

Green investment funds- In 3 levels, investment funds evolved-

Employing funds solely by excluding social and/or environmental criteria.

Positive criteria for funds that concentrated on social progress and/or policies and practices related to the environment.

Exclusionary and positive criteria are applied for funds to assess and select investments that got potential benefits.

Carbon funds- Either the money is received by investors so that CO2 emission reduction credit cards can be purchased from an existing emission project with reduction as the topic or in new projects it is invested to generate CO2 emission stream for reduction credits.

In many countries, Kyoto’s objectives are carbon fund driven. Companies are offered private carbon funds with a cost-effective compliance instrument. The profit is returned with a possibility to be provided by investors. Corporate social responsibility and marketing are good opportunities.

Sources:- Handbook of Green finance by Jeffrey D. Sachs.


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