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Green

What is this section about?

Green section will cover quite demanding issues connected with climate changes, which are already affecting the quality of life on all continents (among others extreme floods, huricanes, wild-fires, ice melting, draughts etc.), as they have materialized as consequence of negative CO2 emissions and other industrial activities leading to overall planet over-heating. The way-out of forthcoming enviromental crisis may be embedded in new approach for financing, which will be more sustainable in a long-term way and will be focused on making positive impact (in areas like Environmental, Social and Governance being currently labeled as ESG financing).

Introduction

Climate changes risks and Sustainable financing may be perceived like a two sides of same coin and it is necessary to talk about these topics as we believe that they will shape not only the future of banking industry, but also the whole economy world-wide (with signifficant overleap into politics and diplomacy as well). In order to better understand where we are going, it is quite beneficial to have some overview, what problems we try to solve.

Given the strong magnitude of these issues we will try to bring reliable information to avoid any misleading or subjective opinion and therefore we aim to analyze and re-produce the data from sources like Bloomberg, IMF, EBA, ING Bank, Deutsche Bank, Erste Bank and from daily press devoted to this topics.

Content

This section will be divided into following categories:

  • Climate changes risk
  • Energy production alternatives
  • European Green Deal and Fit for 55 strategy
  • Investors sentiment and market push
  • Sustainable financing and EU Taxanomy
  • Big bang for Banks

As this topic is becoming more urgent and simultaneously too many key issues still remain to be yet answered, an regular update will be brought to you within the each category as the story will unfold. For sure there is no easy way how to reduce Carbon footprint and many mistakes to be done can be expected upfront. This is given the fact that many new energy production technologies will have to be yet constructed, while the move out of traditional coal industry is anticipated, which is to be replaced with renewables (solar, wind farms, green hydrogen etc.). However future energy production system will not work only with renewable energies, but also another source of energy like Gas or Nuclear power will have to be sustained as well. Such stance will naturally face a lot of controversial ideas, while both mentioned sources come with certain security risk.

Further, if united approach of all countries is not achieved, then any effort to prevent from planet over-heating may go in wane and those, who started with system changes will suffer from more expensive life style and their economies may become less competetive due to increased costs, and vice versa. Simply, there is going to be no winner nor looser, this time it is different and we all are in this together.

Conclusion

Due to the fact that this topic will most likely go beyond the scope of these web pages and already represents one of the main topics of this century, it is going to be still opened and any conclusion will be far from the sight in nearest period.

For sure, it will be very interesting to follow-up on how EU will be able to move forward in line with such demanding targets which had been agreed within EU Green deal and scaled-down into more details in Fit for 55 strategy. And local aspect is for us most important at the end of the day, so that there will be focus also on development in Czech Republic, as such.

In addition, there is quite strong momentum on the market to favor ESG investments and Green deals, which seems to set the future market direction and have inevitable impact also on corporate world, which is already adjusting to this trend. So far, we can say that there will be a lot of issues/ undertakings ahead, while we will be still moving in uncharted teritories, which will certainly deliver unforseen problems, on top of that.



However, the latest Report on Climate change published by IPCC in August 2021 revealed that we are actually already on this track and the threshold of 1,5 degrees Celsius is getting nearer then previously anticipated. This report delivered estimates that it could happen in early 2030s. It also says that our remaining Carbon “budget” is […]

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