The intrinsic role of the banks in decarbonizing the economy

Abstract

Global warming and climate change continue to disrupt the environment and all aspects of people’s endeavors and as such, there is need to look at causes of climate change and deploy appropriate tools to address the problem of the scourge of climate change. Banks hold a pivotal position in the economy of any country. Apart from being the custodian of money, they also collaborate with the government and international financial institutions to perform various roles that shape the direction of the world’s economy in terms of growth and development. Against the backdrop of this, this article looks at banks as part of the appropriate tools that should constantly be used to address and reduce the influence of fossil fuels that are fuelling global warming and climate change and switch to more sustainable green economy. In order to achieve this, there should be radical acceleration in advancing credit and loan facilities by banks to fund green projects and investments in order to decarbonize the economy, and at the same time maintain sustainable economic growth and development.