Think green to finance clean energy

Global warming is happening right now, and has been going on for decades now, yet still too little has been done to reduce this global threat. Energy need is one of the key contributor in it.

Financials, are you green orientated?

Sure, all financials love the colour of green, in the sense of dollar bill green, but environmental green/renewable is another important kind of green, yet most projects, including renewable projects, have a focus on IRR. “Green” infrastructures must be supported by green finance.

Catalyzing Green Finance a crucial report which has been launched after Paris Climate Change agreement in 2015. Of course, financial gain is the ultimate goal of most projects, but should cash be the only thing that counts, or should a financial also include more aspects like:

  • Reduction of CO2
  • Carbon credit
  • Kwh used
  • Community founding and participation
  • The “green” attitude of the company

Yes, financials should include these green aspects when evaluating an infrastructure project including energy project.

Why?

  • Reduction of CO2 emission will be regulated by law very soon. A company will have to meet CO2 standards. If a standard is exceeded, a company must pay fines or levies.
  • Many investors will not invest in traditional energy. Funding will be an issue and financial cost of traditional sources will grow. Recently the city council of Rotterdam decided that they do not want to invest anymore in coal and transhipment of coal in the harbor.
  • There is also the non-financial aspect for other stakeholders. Employees like to work for green companies and customers want to buy from green companies.
  • In relation to that, ‘green’ is a powerful ‘marketing value’. Employees driving in electric cars, being CO2 neutral, it helps to create a positive ‘vibe’.

Smart Energy Solutions” are the keywords in such a long term investment.

Smart in looking for solutions that are greener, smart in looking when green solutions are THE solution, smart in combining all kinds of renewables. Green energy solutions are not only better for the world, but also more profitable than one might think of.

My advice to all financials is to put “green” in the top 3 of your strategy list, learn more about all kinds of green solutions, and to take a step back to look at the bigger picture. You will be surprised over how many possibilities are already there, and the best thing is that these solutions can be optimized individually.

What kind of green solutions did you introduce in 2017, or are you planning to introduce in 2018?

I would love to hear your thoughts or questions in comments.

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