The Green Finance outlook for 2022: Trends, concerns and new entrants
- Banking and climate fintech are set to grow closer next year, especially with new entrants coming in to bridge the gap and pair capital with clean projects.
- There will be opportunities for traditional banking institutions looking to add “green” products for consumers, but also more environmentally-focused lending solutions.
The green finance market is anticipated to grow significantly in 2022 as the urgent need to transition towards a low-carbon economy is beginning to materialize into action.
On one hand, banks are being pressured to ‘clean’ their books and begin divesting from fossil fuels, reorienting their funds towards greener developments. And this is no small feat, given that US banks like JPMorgan Chase, Citi, Wells Fargo and Bank of America are among the world’s top bankers of fossil fuels.
On the other hand, there are climate-centric companies that have mostly been working under the radar on sustainable technologies and services that have proven profitability, and they are hungry for capital.
The two industries are set to grow closer next year, especially with new fintechs coming in to bridge the gap and pair capital with clean projects. A new wave of ‘climate fintechs’ is emerging, offering consumer products such as wooden debit cards and carbon footprint trackers, as well as commercial services like ESG management and portfolio optimization for fossil fuel divestment.
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