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The Role of Development Banks in Green Finance and Sustainability
Abstract
The development banks (DBs) contribute to a broader aspect of the financial system, rather than private banks that serve more specific areas in retail, wholesale, and investment needs. In this chapter, the author discusses how DBs work to support the implementation of the United Nations Sustainable Development Goals (SDGs) by providing financing for sustainable infrastructure, renewable energy, climate change adaptation and mitigation, and biodiversity conservation. They also help countries to build resilience to the impacts of climate change and environmental degradation. It is very critical to support sustainable economic development in various parts of the world, especially advanced and developed economies who are the major polluters. Therefore, development banks perform an important role in the contribution and achievement of public policy objectives through green and sustainable finance. The author concludes with his thoughts on existing regulations, programs, and incentives and further recommendations to support and build a more sustainable future.
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