Green Banking and Sustainability

Green Banking considers all the social and environmental factors with an aim to protect the environment and conserve natural resources. It is also called ethical banking or a sustainable banking. It promotes environmental-friendly practices and reducing carbon footprint from the banking activities. Green Banking will blend customers’ financial interests with the interests of the environment. Green Banking will also enable environmental sensibility to pay off for clients and for the planet. Green Banking is an innovative solution for sustainable development. “Poverty eradication, changing unsustainable and promoting sustainable patterns of consumption and production and protecting and managing the natural resource base of economic and social development are the overarching objectives of and essential requirements for sustainable development.”

“A Green Economy, supported by a strengthened Institutional Framework for Sustainable Development is based on safe, secure and low-carbon energy, with integrated climate change and development priorities taking into account resilience to natural and manmade hazards.” Global warming and the expected depletion of the conventional energy sources such as oil and gas are pushing the GCC (Gulf Co-operation Council) countries to search for subsidiary energy sources. The per capita carbon dioxide emissions in GCC countries are the highest in the world and hence Banks in GCC Region have given a thrust on Green Banking and Sustainable development.

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