1 Jun 2022
Sunday, June 5th, is 'World Environment Day'. It promises to be the most important international day dedicated to the environment. The United Nations Environment Programme (UNEP) will lead the celebration, having held events annually since 1974. Millions of people worldwide are set to engage in different ways to protect our planet. At Funding Options, we're joining thousands of other green companies to raise awareness about how businesses can reduce their carbon emissions. Here, we'll discuss how transitioning to green finance contributes to environmental action.
The Climate Change Committee has noted that the UK needs to invest £1.4 trillion before 2050 to reach net-zero emissions—where greenhouse gas emissions, such as carbon dioxide, are minimised. This presents an opportunity for the green economy, with Green financing playing a vital role in the fight to control climate change.
In essence, green financing is a loan or investment that supports environmentally-friendly activities. An example would be the purchase of eco-friendly goods or building sustainable infrastructure.
Making the necessary business changes for a greener business environment can be expensive, so green financing often includes grants and incentives that make it easier to deal with the cost of switching to electric vehicles, machinery, and renewable heat sources. The UK government helps people and businesses make good purchasing and investment decisions for themselves and the environment.
The Department for Business, Energy and Industrial Strategy (BEIS) has encouraged investment by establishing different green impact initiatives.
One of these is the Clean Growth Fund (CGF) — a new £40 million fund that combines a £20 million investment from BEIS and £20 million from 2 private sector investors. The privately-run venture capital fund seeks to raise £100 million, aiming to speed up the use of green tech by making investments in companies with promising innovations.
Another funding scheme is the Energy Entrepreneurs Fund (EEF), which supports developing and demonstrating groundbreaking technologies, products, and processes in energy efficiency, power generation, and heat and electricity storage.
At Funding Options, we are supporting UK SMEs to reach net zero. To turn the UK's part of the Paris Agreement into reality, SMEs — who account for a third of the UK's carbon emissions — need to incorporate more sustainable business practices.
To aid this transition, we created a Green Finance Marketplace that will help SMEs on their journey towards reaching net-zero. Through Green Finance, Marketplace lenders will have the power to shift their business to a more sustainable future.
If you're a green business whose core mission is sustainability, or if your company is looking to purchase a green asset such as an electric vehicle or a solar panel, we'll connect you instantly to the right lender with the best interest rates for your green loan.
You could benefit from Green Finance if one or more of the following points apply:
Your business participates in renewable, low/zero carbon or sustainable activities
Your company sells sustainable products or services
Your business is working on a green project
Suppose you're a business looking for funding from a lender who follows sustainable practices. In this case, we'll match your needs to our panel of vetted green lenders.
A green lender has one or more of the following:
A product tailored to the purchase or leasing of green assets
Proposition developed to support green businesses.
Interest in funding businesses at different pricing levels due to renewable, low/zero carbon or sustainable business activities, products or services
Sustainability, ESG or green policy