Monthly Archives: May 2013
Financing Green Growth in a Resource-constrained World
Every year developing countries requires amount of 200 billion dollars to combat drought, lack of water, famine, floods and deforestation limitation. As they are the developing countries, the financial needs and requirement are not met by their income generation. This leads intervention of world organisation such as World Bank, United Nation Development Fund to provide financial support to developing countries. But these funds are given under stipulated policies and frame work that all activities aim to protect the climate change of the development countries. They are also mandates to create renewable way of resource utilization instead of constrained non renewable resource exploitation.
Carbon credit exchange is new form of income to industry and organization. The whole idea behind carbon credit exchange is that non renewable industry in developed country can buy credit point earned by renewable industry which is in under developed or developing countries. The purchasing norms is created and maintained by KYOTO protocol which has different rule to various industry and even based on country. This again enhances green companies to grow more and earning through carbon credit is considered as financing method. So in over all the green growth induces resource constrained areas to develop sustainable plan and implementation through multiple financial aids.