Surname 1Surname:Instructor’s Name:Course:Date:Examining the Concept of Green Economy and Green Funding in the Gulf RegionSection 1Introduction to the TopicA green economy is one that results in improved well-being of people and social equity, while substantially reducing ecological scarcities and environmental risks to the future generations (UNEP 3). It is characterized by intensified investments in the commercial sectors that build on and boost the earth’s natural capital. These sectors include low-carbon transport, renewable energy, clean technologies, sustainable agriculture, energy-efficient buildings, improved waste management, sustainable fisheries, and improved freshwater provision (UNEP 3). The investments are motivated or sustained by national policy modifications and the development of market infrastructure and international policy. Similarly, these policy changes and investments provide mechanisms and the financing for the reconfiguration of infrastructure, institutions, and businesses, and the adoption of sustainable production and consumption processes (UNEP 3).The green fund is a mutual fund that invests in firms or corporations that are considered socially conscious in their operations or promote environmental responsibility. The funding can take the form of a focused investment for organizations engaged in environmentally supportive businesses, such as green transport, alternative energy, green building, pollution control, sustainable living, and waste and water management. These companies often develop new
Surname 2technological solutions for resolving the major environmental concerns. For instance, Dubai’s Electricity and Water Authority plans to develop as $27 billion (Dh100 billion) clean energy fund(Gulf News par. 1). The fund will offer Dubai’s clean energy investors with low-cost loans as part of the country’s green energy program. In its broader sense, green finance encompasses the financial processes and initiatives aimed at stimulating environmentally sustainable investments, such as low carbon technologies, industries, energy resources, products, and businesses across financial asset classes (BIAC 1). Through green finance, the financial sector can support the changeover to a green economy by offering pricing and tradability of carbon threat and assisting in the handling of the climate risks through insurance coverage and the use of financial instruments to hedge the risks. Conversely, Green Bonds refer to any category of bond instruments whose profits are solely used to finance or re-finance partially or wholly new or present eligible green projects and which are affiliated tothe four core concepts of the Green Bond Principles (GBP) (ICMA 2). Currently, the market for Green Bonds is increasing rapidly.