Template-Type: ReDIF-Article 1.0

Author-Name: Ralph De Haas
Author-Workplace-Name: EBRD, KU Leuven, CEPR
Author-Email: deHaasR@ebrd.com
Author-Person: pde69

Title: How Finance and Firms Can Accelerate the Green Transition

Abstract: Access to bank credit and the quality of firms' management both play important
roles in determining how much businesses invest in energy efficiency and pollution
reduction. While credit constraints can hinder firms' ability to invest in capitalintensive
clean technologies, such as machinery and vehicle upgrades, bad
management practices often also pose a significant barrier. Firms with better green
management practices - as measured by their environmental objectives, targets
and monitoring systems - are more likely to invest in a wide range of green projects,
from waste reduction and recycling to energy and water management. Based on
a comprehensive survey of the recent literature, this article argues that policies
aimed at facilitating access to green finance should be combined with initiatives to
help business leaders become better green managers.

Classification-JEL: D22, G38, Q5
Keywords: Carbon emissions, financial system, green finance, green innovation, banks, equity
Pages: 5-17
Volume: 23
Issue: 3
Year: 2024
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-23-3-ove1-de-haas.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:3:p:5-17