We realize that climate change is one of the biggest issues facing society.
Green financing has a critical role to play in working towards net-zero and in the fight against climate change. It presents a great opportunity to build back with a greener future, creating new businesses and jobs. Businesses in Singapore are presented with the opportunity to empower the transformation and capture the huge opportunities that green growth and a green economy represent, not just for our domestic market but also globally. Moving to a low carbon economy will see the introduction of new products and services, sparking a green 'multiplier' of growth for businesses and consumers.
What exactly is green financing?
Green financing is a loan that favors environmentally-friendly activity, such as getting environmentally-friendly goods and services or building environmentally-friendly infrastructure.
To become greener is expensive, so green financing can often include incentives that make it easier to deal with the cost of switching to electric vehicles or improving the energy efficiency of your home or office. It can help people and businesses make good purchasing and investment decisions for both themselves and the environment.
Green finance has well and truly entered the mainstream. As risks associated with environmentally-damaging products and services increase, over time we can expect purchasing and investing in green alternatives to become the norm.
Banks are increasingly making more green finance available and accessible to fund green projects such as solar farms in Singapore and to invest in businesses themselves to help them become greener. Banks, therefore, play an essential role in businesses' access to working capital for this major transformation.
Why is green financing important?
Green finance provides economic and environmental benefits and needs to be managed to ensure there is a just transition to a low carbon society.
Socially, green financing expands the number of individuals and businesses who can gain access to environmentally-friendly goods and services. This makes the transition to a low-carbon society more equal, creating more socially inclusive growth.
It means more money is invested into businesses to help them become greener. This can help businesses to grow, create jobs, reduce carbon emissions and stimulate the economy, creating an effect where both the economy and environment continuously benefit. A win-win for everyone.
At Devise Consultancy, we want to play our part in supporting the transition to a low carbon economy, furthering our purpose of Singapore SMEs' towards building their environmental goals, and have committed to increasing our own funding for green finance businesses related to bridging the working capital gap. We will fully support businesses by prioritizing getting green financing for their investments in the green economy, as well as helping to improve the financial modeling of their company.