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China-Africa Trade Information Service
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China-Africa Trade Information Service
Photo from Daily News Egypt
Strengthening technology research and development of environmental protection and ecological construction, Egypt plans to promote green banking as path to sustainable development.
"Green banking encourages the adoption of environmentally friendly practices and contributes to reducing the negative impacts of climate change, which restores the balance of global growth and enhances the role of sustainability as a future concept that carries the potential for growth for society and the environment," said Mohamed El-Etreby, chairperson of Banque Misr and deputy head of the Union of Arab Banks (UAB).
Among the lessons learned in the aftermath of the global financial crisis in 2008 was the recognition of the importance of harmonising the banking industry with the social and environmental realities, and hence the need to apply the concept of green banking and promote the green economy and sustainable financing, he added.
During the forum held by the UAB recently on the green economy, El-Etreby spoke about the path to sustainable development.
Mainly, he explained that sustainable financing offers promising opportunities for the growth of financial institutions and provides a broader horizon for expansion and physical growth through financing clean energy projects and optimising energy use, as well as microfinance and microenterprise financing.
He said efforts were being made by the G-20, the Group of Seven, the United Nations and the Financial Stability Council to encourage efforts to establish a sustainable financial system and promote opportunities for growth of a green economy, that respects environmental controls.
The World Bank Group, represented by the World Bank and the International Finance Corporation (IFC), was one of the pioneers in developing the green bond market. The World Bank issued the first green bond in 2008. In 2013; the IFC was also the first to float a green bond worth $1bn, thus transforming the green bond market from niche markets to public markets.
The United States, China, and France formed 56% of total green bond issues in 2017, and until September 2017; green bonds worth $1bn had been floated in the Middle East and North Africa.
