The “Black Swan” is “Green”: The Role of the Financial Sector in the Green Transition
The “Black Swan” is “Green”: The Role of the Financial Sector in the Green Transition

Author(s): Daniela Bobeva
Subject(s): Financial Markets, Green Transformation
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Green transition; Green finance; ESG
Summary/Abstract: The European Union has started an ambitious and unique transition to a green economy. The financial sector is assigned a key role in the transformation process. While the legal framework of the transition is already developed, many challenges remain to be resolved to achieve a smooth functioning of the financial system within the changing environment. The article explores theoretical views on the green transition and the role of the financial sector. The impact and the risks of the ongoing reforms in the financial sector are identified. The applied methodology is based on a combination of qualitative and quantitative analysis using ESG data, as well as data from a special survey aiming at capturing the views of companies with significant carbon emissions on their relationship with the banks in the changing regulatory and financial framework.

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