Could the Green Supporting Factor help mitigate climate change?
Manninen, Otso; Tiililä, Nea (13.07.2020)
Volyymi
94Julkaisija
Bank of Finland
2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202007142246Tiivistelmä
The need for sustainable finance has grown because of the urgency to mitigate climate change. One proposal to encourage sustainable finance is the Green Supporting Factor, which would make it less costly for entities in the financial sector to finance environmentally sustainable investments. However, it is not clear how well this would incentivise companies in the real economy to ‘greenify’ their investments. Furthermore, the uncertainties and potential adverse effects of the Green Supporting Factor make it an alternative all the less appealing.
Julkaisuhuomautus
The accessible version of the article: http://www.bofbulletin.fi