About Green Funding

Green funding refers to the financial resources that are provided to support sustainable and environmentally friendly projects. This can include funding for renewable energy, energy efficiency, sustainable agriculture, green infrastructure, and other initiatives that are designed to reduce carbon emissions and address the challenges of climate change.

Green funding can come from a variety of sources, including government grants and loans, private investment, philanthropic donations, and international aid. Many organizations, including banks, venture capital firms, and impact investors, have established dedicated funds for green projects.

Green funding is important because it helps to accelerate the transition to a more sustainable economy by providing the resources needed to develop and deploy new technologies and practices. It can also create new business opportunities and jobs in the green sector, while helping to mitigate the environmental impacts of economic activity.

Professional accountants must help drive the migration to sustainable economies and businesses by becoming experts in green finance, according to the latest report from ACCA ‘Green finance skills: the guide’

At a time when access to cheaper capital is more vital than ever to an organisation’s long-term survival, access to green finance can be a lifeline to businesses. However recent research by ACCA and the Institute of Management Accountants (IMA) revealed that business say they’re underinformed on climate finance opportunities and climate risk management. 59% of the respondents to the Global Economic Conditions Survey Q2 2022 said they are not considering using green finance products – an opportunity that must be addressed.

With lenders increasingly offering attractive ‘green rates’ to organisations able to meet sustainability requirements, green finance is cheap capital that can keep businesses in business. Professional accountants’ ability to understand the green finance options needed for the transition to net-zero is key to equipping organisations with this expertise. Having the skills to consider non-financial as well as financial business drivers will also leave the profession well placed to lead in training staff and developing the talent needed for enabling transformation and embedding sustainability.

Report author, ACCA Senior Subject Manager – Sustainability, Emmeline Skelton said: ‘Green finance is part of the fundamental narrative of ACCA’s research programme on net zero transition and the role of the accountancy profession.

In a world where key stakeholders are demanding more from companies and their net zero objectives, green finance is fast becoming the hot topic for the finance profession as it explores financing options. The profession needs upskilling, especially in volatile times, where access to capital including green finance is crucial for an organisation’s long-term survival.’

John Lelliott OBE FCCA, Non-executive Director of the Environment Agency and ACCA Sustainability Global Forum Chair said: ‘The accountancy and finance profession’s knowledge and skills in evolving market trends, stakeholder requirements and regulatory changes, will be key to transform organisations to operate in a net zero economy.’

Because finance and investment professionals have such a critical role to play in helping organisations adapt to build a more sustainable future, ACCA has taken practical steps to upskill its members. In particular, ACCA has worked together with CFA Institute to jointly launch a Climate Finance course designed by experts from both bodies.

Article from ACCA Official website all rights recognised. Visit the website here.

KKVMS are members of the ACCA.