The financial sector’s concrete actions to promote the green transition
- The green transition is one of the strongest megatrends ever witnessed in the financial sector.
- The financial sector’s role in the green transition is three-fold: it acts as a major lender, investor and bearer of insurance risk in a wide range of projects.
- To better promote the green transition, the financial sector needs clear and comparable data to support its decision-making and business operations. The data is needed to manage risks, direct funding, fulfil the sector’s objectives and avoid the risk of green washing.
- Climate-adverse and environmentally detrimental business activity must be subject to regulation that is based on the ‘polluter pays’ principle. We need a real price for carbon emissions.
- All regulation must be assessed in terms of its impact on the green and just transition. Innovations in financing should not be hindered, even unintentionally. Incentives work better than obligations.
The financial sector is strongly in support of the green transition and has a key role in enabling and promoting this change. Sustainable economic growth will present new business opportunities also in the financial sector.
Finance Finland publishes an article series showcasing our member organisations’ concrete actions to promote the green transition. Scroll down for a full listing of the articles.
Article series
Finnish financial sector's concrete actions in the green transition