The financial center is mobilizing to preserve the planet

[tanjimajuha20]

In a context marked by a global health crisis, the finance of the future will be resolutely sustainable, responsible and ecological. A trend that is now set in stone and that will attract imitators!






As public interest linkedin database increasingly turns to environmental issues, the finance sector is striving to adapt with the meteoric rise of sustainable finance – or so-called “green finance” .



Its objective is simple and yet revolutionary in the world of banking: to give meaning to financial investments. When traditional finance only seeks to invest in the most profitable projects, green finance favors responsible investment and adds environmental, social and governance (ESG) criteria to enable the development of a sustainable economy. A socially responsible investment (SRI) that finances specific projects contributing to the energy transition or the fight against global warming.



A market that has experienced exponential growth in recent years. In Europe, there are no fewer than 170 investment funds based on green finance .



On the individual side, green finance is also appealing with the emergence of a new idealism among savers. 50% of French people would prefer a less profitable investment in favor of a positive environmental impact.



France leads green bonds


In this sense, investment funds, banks, but also States and companies are innovating to find new financing tools of which green bonds are one of the symbols.

Green bonds? Bonds issued to finance initiatives against global warming and promoting ecological transition (electric vehicles, renewable energies, eco-responsible buildings, etc.) whose main issuers are States and companies (29%).



In this landscape, France is a good student and even a class leader since the country is the leading issuer of green bonds in Europe (and the 2nd in the world behind China) with the issue of the greenest bond in 2017 for an amount of 7 billion euros!



A strong commitment from the French public authorities making Paris one of the world's leading green financial centers , which gives impetus to private players, banks and large groups such as ENGIE – the leading corporate issuer of green bonds with more than 11 billion euros since 2014.



Despite the global pandemic, the Green Bond market was barely impacted in 2020 with more than $220 billion. For 2021, this market is expected to break all records: between $300 and $400 billion!