There are 18 unmissable stages on the way to a more sustainable credit for the companies of the green economy. Many, perhaps too many to address them all at once, better to set priorities among the priorities: the tax lever adjustment first of all, by strengthening the initiatives of credit institutions for the green economy; the promotion of green oriented initiatives within the venture capital he was born in private equity, which the Cassa Depositi e Prestiti; a major insurance contribution to support the adequate management of environmental risk, also in light of the intensification of natural disasters; a greater communication to the market and investors on the advantages of the green economy.
These and other proposals, 18 in all, were discussed during the eighth programmatic Assembly (the last) - dedicated precisely to "Development of sustainable finance and credit for the green economy" - which took place on Tuesday 25 September in Milan in preparation for the States General of the Green Economy which will be held in Rimini, as part of Ecomondo-Key Energy, on 7 and 8 November next, organized by the Ministry of the Environment and 39 green business organizations.
“In this phase of the economy - he said Marco Frey, coordinator of the working group on sustainable credit and Director of the Institute of Management of the Scuola Superiore Sant'Anna in Pisa - the contribution of banks and financial institutions can be fundamental by encouraging, through careful credit management, the most efficient and renewable activities, solutions and technologies and by discouraging the most polluting ones. In Italy, it should be noted that the level of proactivity and privileged attention to sustainable investments on the part of banks and financial institutions is still at a very early stage even if there is a significant number of credit institutions that to finance in a privileged way some sectors of the green economy have made a significant commitment to environmental issues”.
L'ABI Renewable Observatory calculated that in the period 2007-2011 the banks took on financing commitments in the sector of renewable energies for over 20 billion euros. However, the role of banks and finance must be framed correctly: finance, it was underlined during the Assembly on Tuesday, can be the facilitator not the engine of the green economy; the lubricant, not the gasoline. Green ideas and proactive actions must come from the market.
here is the “Package” of 18 sizes proposed by the programmatic assembly to financially support the green economy.
1) Strengthen the awareness of citizens, the political and economic worlds on the need to protect natural resources and to produce new goods and services of ecological quality and reduced environmental impact.
2) Improve and develop communication to investors and markets on the advantages of the green economy to promote new development and get out of the recession.
3) To highlight how companies, which today are better able to withstand the crisis and compete, are those that know how to combine innovation, internationalization and green economy.
4) Strengthen economic instruments that apply an incentive / disincentive based on the polluter pays principle and on the promotion of initiatives and industrial chains that use and distribute products with a lower environmental impact.
5) Adopt ecological taxation measures, shifting part of the tax burden from work and investments on the consumption of resources.
6) Promote a better use of the resources of European funds and a strengthening of European initiatives.
7) Improve and strengthen, by acting on regulation and tax leverage, the initiatives of credit institutions for the green economy, such as dedicated lines of credit for businesses and citizens.
8) Provide low-cost funding to banks / credit institutions, whose very high cost of funding (since 2008) makes financing for green economy companies expensive.
9) Promote and support green oriented initiatives in the field of venture capital and private equity. Cassa Depositi e Prestiti could, for example, as done in other sectors, set up a closed fund, dedicated to the green economy, for both venture capital and private equity.
10) Increase the contribution of insurance companies to support adequate environmental risk management, also in light of the intensification of disasters.
11) Encourage investments and use of financial, public and private resources in a targeted manner, in the direction of changes towards sustainable production and consumption.
12) Integrate data and information specifically related to environmental variables within credit assessment systems. The absence of a solid and credible database represents an important obstacle for credit risk measurement processes.
13) Increase both public (public procurement) and private demand for goods and services with a high environmental value, so as to strengthen the positioning of green economy operators.
14) Facilitate energy efficiency in the Public Administration through the creation of incentive mechanisms, both direct and indirect, including the reduction of the VAT rate on materials and services or the reduction of the IRES rate on vehicle companies set up for the implementation of the interventions at the PA.
15) Create a suitable National Guarantee Fund.
16) Establish a mixed public-private fund to subsidize theequity and the VAT component.
17) Establish specific funding for interventions in residential construction (public and otherwise), aimed at reducing the serious problem of fuel poverty and establish restructuring plans for public housing, implementing energy efficiency measures and redefining the schemes and tariff structures for the transmission and distribution of grid energy so that they have a social purpose.
18) Support, also with the support of pilot projects, the design and testing of innovative financial instruments, such as i project bond, i social impact bond or other principle-based mechanisms payment by results.