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What challenges green finance strategy is facing?

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As we passed the major recession that happened in 2008, we still remember the effect and how badly the financial structures were affected which became consternation for our future and how we are going to move forward?

Well, multiple efforts and financial strategies were developed to combat such a situation but still, the future will always remain unknown. One such effort took form in Green finance. Sustainable finance took birth from the ashes of the burn-down financial investment with a goal to provide a sustainable future.

Massive investments are needed by the world in green energy systems in order to have effective long-term planning, budgeting, and project implementation which can lead to the success of the government. As per Jeffrey D. Sachs et al., three challenges have been identified,

  • Project which is right.
  • Complex plan has been developed involving both the public and private sectors.
  • Finance been structured.

The major investments in the developing world are in particular related to water and sanitation projects in fast-growing urban areas whereas health and education systems need to be scaled up in low-income countries. Even in electric vehicles and advanced batteries with a reduction sharply in internal combustion engine vehicles.

But to develop a fruitful strategy that can give a return on investment in the long term is still a huge crisis and it may take some time to organize structured finance that can lay a strong foundation to firmly hold the future to be built upon.

Source:- Handbook of Green Finance by Jeffrey D. Sachs et al.

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