GREEN LOANS AND ECO LOANS IN THE BANKING SECTOR UNDER THE CONDITIONS OF CLIMATE CHANGES

Abstract

Environmental pollution and depletion of non-renewable resources are major problems at the international, national, regional, and local levels that endanger biological diversity, human health, and the further development of the economy. The economic and financial impact of climate change can lead to considerable future losses for banking financial institutions and environmental degradation is becoming a crucial dilemma globally. Climate change has become a threat to sustainable development. Mitigation and adaptation should be a priority of national policy. The increasing tendency of excessive consumption of natural resources due to intensive economic activity of corporations has led to a significant increase in greenhouse gas emissions, leading to global warming and, ultimately, to global climate change. These issues present the scientific community with the dilemma of finding a compromise between economic development and its impact on climate change. The main aim of the research is to emphasize the importance of responsible lending by promoting green banking products as green and eco loans, identify the potential environmental impact of negligent financing under the conditions of climate change, give definitions of this topic, consider current trends in the banking sector and prospects of development. Also, based on international experience, the authors tried to identify the main aspects of the environmental management policy of ProCredit Group and examine the share of the green loan portfolio at the group level, determine the environmental impact and subtract the improvement strategies and methods for implementing green lending in the Republic of Moldova.