Green loans and projects aimed at protecting the environment and increasing the sustainability of the economy

Abstract

The study examines the transition to a sustainable global economy, which requires countries to encourage and stimulate investments that bring environmental benefits. Due to the growing pressure on governments to reduce greenhouse gas emissions and reduce all types of pollution, so–called green finance has assumed an important role by providing governments. The study noted that green finance uses the power of markets to allow investors and businesses to make money, as well as save the planet. Green loans are loans that are provided to finance environmental projects aimed at improving the environmental situation and reducing the negative impact on the environment. Such projects may include the installation of equipment for the use of renewable energy sources, improvement of waste management systems or the introduction of technologies aimed at reducing emissions of harmful substances. Green loans can be businesses and often have lower interest rates compared to conventional loans.