Green Finance and Various Industries

Agribusiness and Food Production

Globally, the hyper-industrialization of food production systems is threatening environmental sustainability and human health. It is feasible to feed a growing world within safe socio-ecological planetary boundaries, as required by the UN Social Development Goals and the Paris Climate Agreement. However, this would require “a huge shift in food production”.

Supporting the green development of agriculture is an inevitable requirement to achieve sustainable development goals. In recent years, the global agricultural and rural development environment has undergone major changes. The decrease in the quantity and quality of arable land coexists, the constraints on agricultural water, soil and other resources are becoming more and more serious, the agricultural non-point source pollution continues to increase, and the degradation of agricultural ecosystems is more prominent. To achieve the coordinated, unified and sustainable development of agricultural production and living ecology, and to form a spatial pattern, industrial structure, production method, and lifestyle that save resources and protect the environment, it is urgent to build a financial support system for agricultural green development.

Infrastructure

The infrastructure sector includes a wide range of activities that vary from medium to high environmental impact. Construction and decommissioning activities are typically resource intensive.

The infrastructure sector has numerous opportunities for cost-savings and efficiency improvements. An analysis of what areas of the operations could be improved to generate savings and higher efficiency can be determined by exploring the following:

· Use environmentally friendly building / construction materials

· Reduce and reuse construction waste

· Increase water recycling and reuse of wastewater

· Reduce air emissions by switching to alternate fuel sources for operating machinery

· Increase use of efficient vehicles such as hybrids or electric vehicles for transporting materials

· Transportation – increased use of efficient vehicles as hybrids or electric

· Disposal of obsolete telecom equipment, use of renewable energy such as solar powered transmission towers

Retail and Services

Since the 1970s, the deterioration of the global environment, the efforts of the international community and governments, and the impact of green movements and public media have made environmental issues a global hotspot. How to meet the needs of today’s human beings without jeopardizing the ability of future generations to meet their needs has increasingly become an important task for enterprises with a sense of social responsibility, and green marketing has increasingly become the mainstream marketing strategy of enterprises.

Walmart, a closely watched retailer, claims to “go green to save the planet”. Walmart announced its environmental protection expectations in 2005: to increase the driving efficiency of all Walmart operating vehicles distributed around the world by 25% in the next 3 years, and by 50% in 10 years, so as to reduce vehicle energy waste; at the same time, take measures to reduce the electricity consumption of Walmart global chain stores, and plan to save 30% on the original basis in the next 10 years. Walmart may not be just talking about protecting the environment, so far it has invested more than $50 million in sustainability projects.

General Manufacturing

Green development is an eternal theme. Taking green development as one of the main directions is an inevitable choice to promote the sustainable development of the manufacturing industry. Green development from the perspective of manufacturing industry is to combine the current situation with the future. The specific ways are as follows:

First, carry out green transformation of traditional manufacturing industries, such as steel, non-ferrous metals, building materials, chemicals, papermaking, textiles, printing and dyeing and other industries. Energy consumption and resource consumption mainly come from traditional industries, so the green transformation of traditional industries should be the top priority. It is necessary to promote the use of advanced energy-saving and emission-reduction technology and high-end power-saving equipment and equipment technology, so as to reduce the energy consumption and pollution discharge of the existing traditional manufacturing industry as soon as possible.

Second, implement cleaner production in key regions, key industries and key river basins. By applying cleaner production technologies and processes, cleaner production can solve the problem of pollution discharge from the source.

Third, implement ecological design. From the perspective of the whole life cycle, about 70% of the environmental impact of industrial products has been determined in the design stage. Therefore, when designing products, the impact on the environment and resources during the entire life cycle of product manufacturing should be considered, so that green development can be considered in an integrated manner in the selection of raw materials, production processes, green consumption, effective recycling and other aspects of the whole life cycle.

Oil and Gas Industry

For the oil and gas industry to establish a new image of a low-consumption, high-efficiency, clean and environmentally friendly industry, source prevention and process control must be strengthened. It is difficult to raise enough funds to support ecological construction and transformation only by relying on market mechanisms to regulate the flow of funds. Therefore, we need to innovate the application of green finance in the oil and gas industry.

The oil and gas sector has numerous opportunities for cost-savings and efficiency throughout the development and refining processes. An analysis of what areas of the operations could be improved to generate savings and higher efficiency can be determined by exploring the following:

· Increase co-generation, waste heat recovery, and combustion efficiency

· Increase wastewater recycling and reduce water consumption

Reduce amount of energy consumed or increase amount of energy from renewable sources

Mining

At a time when the construction of ecological civilization is becoming more and more popular, and the construction of green mines has become an industry consensus and has entered a substantive stage of advancement, green finance is exploring an effective model for integrating into the construction of green mines through its powerful leverage function, becoming a booster for the construction of green mines .

The mining sector has numerous opportunities for cost-savings and efficiency throughout the exploration, development and construction, operation, closure and decommissioning stages. An analysis of what areas of the operations could be improved to generate savings and higher efficiency can be determined by exploring the following:

·Use of less carbon intensive fossil fuels or co-firing with carbon neutral fuels (i.e., biomass)

·Increase energy from renewable sources

·Increase wastewater recycling and reduce water consumption

·Increase co-generation, waste heat recovery, and combustion efficiency

·Greening of supply chain by addressing resource efficiencies of suppliers

Forestry

With the continuous advancement of global development, the concept of harmonious coexistence between man and nature has been deeply rooted in the hearts of the people, and the concept of green development has received widespread attention. As the core of the modern economy and resource allocation, finance plays a very important role in green development. Financial support is a key factor in the green development of forestry. The establishment of an interactive mechanism between green forestry and finance is conducive to promoting the coordinated development of forestry green industry and finance.

In the development of forestry, we should follow the principle of protecting forestry resources and environment and promoting sustainable development of forestry, resource recycling, low-carbon environmental protection, promote and implement sustainable development of forestry by financial industry in investment, provide financial support for the establishment of green industrial system of forestry and green ecological system of forestry, and facilitate the healthy development of forestry ecology and green industrial system of forestry.

Power Industry

According to an International Energy Agency (IEA) report in 2020, Southeast Asia is one of the fastest-growing regions globally in terms of power demand. Malaysia, Thailand, Viet Nam, and Indonesia make up over 80% of the total electricity demand in the region. This region defined its 2030 target to universal access and aims to double its capacity to generate power by 2040. While millions of people have gained access to electricity since 2000, a large portion of the population in the region still has problems accessing electricity today. Achieving universal access to electricity and increasing electricity market efficiency is crucial to economic growth.

However, policymakers must achieve a green power sector and reduce its reliance on fuel while doing so. In recent decades, some economies in Southeast Asia have addressed the reforms in their electricity market. For instance, Malaysia reformed the Malaysia Electricity Supply Industry in 1992. Singapore started the policy of electricity market liberalisation in 1995, and Taiwan has issued electricity market reforms policies since 1990.