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We do talk about green development and sustainability, but will there be any impact on technology development, the need for the present age, and also a progressive future outlook?

As per experts, yes, green finance does play a significant role in technology development and focuses on the progress of countries.

• Clean technology innovations such as renewable energy, energy storage, EV batteries, hydrogen fuel cells, and carbon capture need financial support to meet demand.
• Venture capital and private equity investments in green technology startups are expanding as sustainable investing gains prominence.
• AI, machine learning, blockchain, and the Internet of Things support environmental impacts.
• Investing more in green fintech solutions such as sustainability-linked supply chain finance and carbon offset tokenization platforms
• Green bonds and loans fund large-scale demonstration projects used in breakthrough technologies.
• Companies will use incentives to adopt resource-efficient technologies for managing climate risks and impacts.
• R&D technologies such as precision agriculture, grid management systems, and renewable-based hydrogen are boosted by green finance.
• Green finance leveraged through technology innovation and progress signals the commitment to sustainability and climate leadership globally.
• Green finance is accelerating technology transfers and collaborations for various solutions across borders.

Green finance is acting as a catalyst for clean technology innovation and an important symbol for technological progress in the economy and nation.

However, the rapid growth of green finance also has the potential to widen the economic gap between emerging and developed countries.

It can be seen that

• Greater access by the developed economies to ESG-focused international capital restricts finance for emerging markets and widens investment gaps.
• Private green investments are constrained due to a lack of quality climate data, internal carbon pricing frameworks, and limited disclosures in emerging markets.
• Inter-ministerial coordination is fragmented, and a lack of comprehensive roadmaps hampers green finance policy advancement and reform in developing countries.
• Low-carbon technologies are expensive and heavily dependent on emerging economies with limited fiscal space.
• Green finance talent and a lack of taxonomy systems inhibit market growth in poorer nations.

Even though it shows a risk of widening the gaps, it needs to be implemented as you cannot stop the growth of any country, especially when tackling major climate change.

So, how can the risks be overthrown with profound measures such as:

• Multilateral development ramps up technical assistance and concessional green financing for emerging economies.
• Capabilities are needed and developed for gathering climate data, policy reform, and disclosure practices.
• Diverging standards and taxonomies are avoided due to global coordination.
• Local contexts are tailored with the support of innovative instruments such as debt-for-nature swaps.
• Best practices are shared with regional forums suitable for developing countries.
• Economies develop from commitments to fulfill climate finance pledges.

Hence, the measures show a way to stop the wide gaps that may erupt due to new sustainable measures adopted by developed nations and support emerging countries to step up and match the growth of developed nations.

The way the world is reshaping and new disruptions are happening in the technology industry, it is not that we can stop the growth, but we should focus on adopting measurable steps that are secured for any sort of finance or project.

Sources:- ADB, mdpi, World Economic Form, Academia, United Nations, UNEP