ЗНАЧАЈ И ИЗАЗОВИ РАЗВОЈА ЗЕЛЕНИХ ФИНАНСИЈА
IMPORTANCE AND CHALLENGES OF THE GREEN FINANCE DEVELOPMENT

Author(s): Milan Čupić
Subject(s): Business Economy / Management, Energy and Environmental Studies, Economic development, Environmental interactions, Accounting - Business Administration, Business Ethics
Published by: Savez računovođa i revizora Republike Srpske
Keywords: green finance; sustainable finance; ethics; regulatory framework of green finance; green financial instruments;
Summary/Abstract: To successfully stop the global increase in the temperature of the earth’s surface below 1.5oC above the level before the industrial revolution, a global transition is necessary, that is, comprehensive changes in all economic activities and entities. To finance this transition, rapid decarbonization and reallocation of capital at the global level and harmonization of the financial sector with the goals of the Paris Agreement are necessary so that every financial decision is made with respect to climate change. Serious joint efforts are being undertaken by many financial institutions, such as those involved in the Glasgow Financial Alliance for Net Zero (GFANZ) which have committed to using science-based guidelines to reach net zero by 2050. The aim of this paper is to point out the importance and challenges of the development of green finance, especially in relation to the regulatory framework and green financial instruments. As a rapidly developing field, green finance is characterized by a wide range of different regulations, principles, standards, frameworks, guidelines and other requirements that should contribute to aligning with sustainability goals, defining green finance practices and avoiding unclear or insufficiently substantiated green claims. Greenfinancial instruments should contribute to the protection of the environment, and they can appear in the form of funds from international financial institutions, multilateral development banks, commercial banks and other financial institutions, as well as funds collected through the issuance of green financial instruments.

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