How Green Finance interacts with Natural Capital

Natural capital can be defined as the world’s stocks of natural assets which include geology, soil, air, water and all living things. In June 2012 a 'natural capital declaration' (NCD) was launched at the Rio+20 summit held in Brazil. An initiative of the global finance sector, it was signed by 40 CEOs to 'integrate natural capital considerations into loans, equity, fixed income and insurance products, as well as in accounting, disclosure and reporting frameworks.'

The concept of Green Finance is now widely known among finance experts as a way to save the natural capital of the Earth. The many different finance tools include debt-for-nature swaps and climate bonds which we have wrote about before. These different methods of green finance are currently being examined for ways to improve their effect on our sustainability.

Essentially, green finance we are trying to improve our economic development and investments while preserving our natural capital, and ensuring well-being. It is a challenging task ahead to ensure our bio-sphere benefits.

Is your business looking to implement a green initiative and needs finance? Call the Green Loan team on 01 55 636 55

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