Experts call for expansion in economics and green finance

A number of experts emphasized the importance of expanding the fields of green economy and its financing in Egypt and the participation of various institutions in this role. The discussion took place in a panel discussion entitled Green Finance, Dimensions and Opportunities, at the Economic Forum Conference entitled “Influential Investment and Strengthening the Role of the Private Sector in Development.”

Hassan Ali, chairman of the Board of Trustees of the Economic Research Forum, said in light of the green transformation, we should benefit from global companies and laws, of which we do not know much, adding that carbon trading is a trade. based on cooperation between countries and each other, where there are countries that cause emissions and can not reduce them.And other countries have the capabilities to reduce emissions and not the financial and technological capabilities, and here cooperation between countries takes place.

He added that the carbon certificates that compensate for the losses of companies’ damage to the environment are considered golden opportunities, indicating that the return of these certificates can be done with green conversion and will cost us nothing in light of creating new attractive brands for companies that sign these international agreements, as well as the creation of a production chain, and cater to the needs of the investing countries.

Regarding the beneficiary of the issuance of these certificates, he indicated that the beneficiary of these certificates are the bodies that have an international commitment to reduce emissions, such as countries, international institutions, airlines and multinational companies, so they buy certificates for reducing emissions because they can not reduce their emissions and announces that they have succeeded in reducing emissions according to numbers mentioned in the certificates.

Hassan Ali pointed out that there is an African country that cooperates with the International Finance Corporation (IFC), which is one of the members of the World Bank group, which is involved in dealing with the private sector. Financially, commercially and environmentally sustainable, as it has invested in coral reefs, and obtained blue financing, indicating that there are great opportunities in green and blue investment, given the presence of a strong local business environment that encourages foreign investment in ‘ attracts an attractive local market.

In turn, Sahar El-Damaty, former vice president of Banque Misr and professor of banking and finance at the US University, said that banks and financial institutions have a major factor in green finance and project development as they are currently interested in providing make. support for green mega projects and sustainable development projects.

She added that the project to grow sugar-producing crops from sugarcane and sugar beet is one of the most important and largest projects recently carried out with the support of banks, as it contributes to the provision of green spaces, which helps to achieve self-sufficiency in sugar, thereby reducing pressure on the dollar and reducing the rate of imports from abroad, as well as reducing environmental damage.

Al-Damati pointed out that banking institutions currently offer greater support to micro-enterprises because they provide an opportunity to those who were previously marginalized and entrepreneurs of students and businessmen, and also provide technology that supports them and helps in their projects, and explains that it was done in a great number of governors, Egypt.

She referred to the Central Bank’s initiative to support the replacement of cars, which aims to reduce the use of electricity instead of diesel and petrol to reduce carbon emissions, which contributes to the preservation of the environment.

In the same context, ing. Muhammad Rashid Al-Balaa, Chairman of the Board of Directors of Mubasher Financial Group, said that there are many details related to the extent to which the company applies green standards, and therefore it is difficult for any company. to determine the level of contribution that this company has made to the conservation of the environment.

He added that he had been setting standards since 2003 to help these companies determine the level they had reached, and Al-Balaa stressed the importance of having professionals who have the ability to set standards to to measure the extent to which they have reached the green direction. .

He explained that this interest should be initiated by governments, pointing out that specific goals and a clear timetable are the way in which we can rise to a better level in the green direction, and therefore the work will be effective and efficient. , with the emphasis that measurement and follow-up are the criteria for success in this side.

On the other hand, Ms Nevin Kashmiri, Deputy Managing Director of The United Bank, said that green financing preserves the environment, and that there are funding funds for these projects in banks, and that it needs the approval of the Ministry of Environment so that there are no obstacles.

She added that the start of funding for the “green funding” project in 1995 was from the Ministry of Environment at that time.

She referred to investment in the field of renewable energy, and that there is an initiative by the Central Bank to have a green sustainability management in each bank.

Nevin Kashmiri confirmed that the Central Bank also supports 8% of industrial financing, 8% of agricultural financing, 5% of financing for small projects and 3% of financing for homeless people to achieve green sustainability.

She added during the session that there is an initiative to establish green banks in Egypt, similar to the “Dutch Bank,” and it is one of the smart solutions that serves the customer, reduces the frequency on the bank, the use of cars reduced to reduce harmful emissions, and has the participation of people of determination, women and men.

Written by: Enas Shaaban, Sanaa Allam and Israa Muhammad

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