Green financing refers to the practice of funding money or providing funds for projects that have positive environmental impacts. This type of financing helps businesses implement sustainable practices and transition to a more environmentally-friendly model.
In the Singapore context, there are 5 types of green financing that small businesses can utilize:
1. Green Bonds: Green bonds refer to debt securities issued by governments to finance environmentally-friendly projects.
2. Sustainable Financing Facilities: These are financing solutions offered by banks and other financial institutions that provide funding for companies to take on environmentally sustainable projects.
3. Environmental, Social, and Governance (ESG) Funds: These are investment funds that focus on investing in companies that have strong environmental, social, and governance practices. Small businesses can access these funds to finance their green initiatives.
4. Energy Efficiency Financing: This type of financing helps businesses implement energy-efficient technologies, such as LED lighting, insulation, and energy-efficient HVAC systems, to reduce their carbon footprint.
5. Government Grants and Subsidies: Singapore government offers a range of grants and subsidies to support small businesses in their transition to a more sustainable model, including funding for energy efficiency projects and renewable energy projects.
These financing solutions can help businesses implement sustainable practices, reduce their carbon footprint, and make a positive impact on the environment.
VALORES GLOBAL is also working with industry partners to encourage more SMEs to jump onto the sustainability bandwagon by providing tangible incentives to companies that make an effort in reducing their carbon footprints. We will be launching our program in due course and inviting liked-minded enterprises and individuals to join us as part of the first movers of this net-zero and green economy.