Green Funding

 

 

GREEN FUNDING

Presented By- Hassan Khan MBA Sem 1st (Sec-B)

 

IS GREEN FUNDING? WHAT "Green funding" refers to funding of a project  or business that is considered environmentally sustainable. Funding can come from private sources or government sources canor begrants. in the form loans or of debt,and equity Greenoffunding is other oftentypes focused on goals beyond financial returns, seeking both financial returns and environmental benefits.”   “A green fund is a mutual fund or other investment

vehicle that will only invest in companies that are deemed socially conscious in their business dealings or directly promote environmental responsibility.” 

 

Forms Of Green Fund A mutual fund or Focused investment vehicle for   companies engaged in environmentally supportive businesses such as: 

alternative energy,



green transport,

water

and waste management, and

sustainable

living.

 

Recipients of Green Funding   Green funding is sought by companies,

organizations or individuals who are producing goods and services that are friendly to the environment, byor having a smaller environmentaloften impact footprint than alternative products or companies. Examples renewable energy companies, purchasersinclude of renewable energy generation, organic farms, makers of products that contain few or no synthetic chemicals and developers of clean technology.

 

Green Fund Strategy Based

on avoiding negative company criteria  (businesses such as guns, alcohol, gambling, animal testing, etc.) 

Choosing positive company criteria (environmental programs, energy conservation, fair trade, etc.), or a combination of both strategies. To

support the environmental sustainability, governments of various countries are funding environmental projects and green ventures.

 

Does investing in sustainable or "green" companies provide lower returns? The   green industry is comprised of companies whose

products or services directly benefit the environment. As environmental consciousness has moved to the forefront of our culture over the last few decades, the green industry is a sector that may be poised for substantial growth. Onstocks the flip side, the effects that also green policies have on in conventional industries must be taken into consideration. While companies in the green industry are poised for growth, their profits will come

at the expense of the established companies they serve.

 

Green Initiatives  

Major

industrial private sector firms have formed an Alliance for Energy Efficient Economy (AEEE ). 

The Central Research Institute - quality of leather as well Leather as reduce environmental pollution. 

National environmental policy(2006)- formed for

promoting clean technology.

 

Go Green With Socially  

Responsible Investing  Socially responsible investing (SRI), also known as values-based or ethical social investing, is an investment process that considers and environmental factors, both positive and negative, within the context of securities and investment analysis. Social investment managers often use social and environmental analysis in conjunction with traditional quantitative securities analysis to make their investment decisions

 

What Is Green Investing? Green investments  investments are traditional   investment vehicles (such as stocks, exchangetraded funds and mutual funds) in which the

underlying business areimproving somehowthe involved in operations aimed at environment. This can range from companies that are developing alternative energy technology to companies that have the best environmental practices. 

 

Difference between socially responsible investing (SRI) and green investing Green Investing Green investing is mainly focused on investing in companies and technologies that are deemed to be good for the environment. This includes individual companies that have a solid track record ofof their reducing the environmental impact operations, as well as companies that offer alternative energy technologies such as solar and wind power. Green investors will also avoid investing in companies that have a negative impact on the environment, such as companies with poor emissions standards.

Socially responsible investing •

Socially responsible investing is broader in its focus in that it considers companies that create a social and environmental benefit, and avoids companies that have a negative effect on society. Companies with a strong record of charitable contributions, that provide a fair and diverse workplace, and/or that have a minimal impact on the environment are just a few examples of social responsibility. A major part of socially responsible investing is the exclusion of certain industries that are deemed to have a negative impact on society, including those involved in alcohol, tobacco and defense

 

Evaluating Green Equity Investments Mutual funds provide an easy way to go "green".   From socially responsible funds that include green companies in their portfolios to funds that exclusively focus on green companies, there are many possibilities to consider. Some funds focus on large cap companies, while others stick with small caps.

 

Cont… 

Evaluating Green Equity Investments  

STOCKS If you prefer to build your portfolio one company at a time, individual stocks provide plenty of

opportunities to choose from. Small c ap cap companies provide pure-play opportunities in the form of opportunities to invest in companies that engage in eco-friendly efforts as part of their primary business. Theindevelopment of a host new technologies everything from wasteofmanagement to energy efficiency is being pioneered by small cap companies.

 

Cont…. 

Evaluating Green Equity Investments   Exchange-traded funds (ETFs) provide another way to go green. Unlike mutual funds, in which actively managed portfolios provide an opportunity for investment managers to implement their best ideas and change the portfolio as necessary, ETFs are passively managed investments that often track benchmark indexes. In the green space, there are ETFs that track indexes related to producing green and renewable energy, the transition from old to new technologies, nuclear power, technological innovation and more. Numerous choices are currently available and more are in the works.

 

Areas Of Focus   Energy efficient infrastructure Usage

expansion of renewable source of energy

Reduction

in green house gases and carbon

emissions 

Development low carbon vehicles, clean technologies, andofgreen infrastructure for waterways, roadways, and railways and conservation

of water resources 

 

Allocation Of Green fund By Government (2011-2012) Forests  

Rs   200 crore proposed to be allocated for Green India Mission from National Clean Energy Fund. Environmental Management   Rs 200 crore proposed to be allocated for launching Environmental Remediation Programmes from National Clean Energy Fund. Cleaning of Rivers and Lakes   Special allocation of Rs 200 crore proposed to be provided for clean-up of some more important lakes and rivers other than Ganga. Having unveiled its Rs 44,000 crore 'Green Mission' aiming to  enhance its forest cover, India hopes to secure global funding  to undertake the ambitious programme to curb greenhouse gas  emissions. 

 

Green Funding Examples  Infosys -> a carbon neutral company by 2012.

involves investing in projects that remove carbon dioxide from the atmosphere and those 

for nullifying the effects ofcompany’s carbon dioxide emissions generated by the normal business operations. 

The U.S.-India Joint Clean Energy and in Development Center is ready to offerResearch $100 million public and private-sector funding for Green-tech  Green-tech  research, the organization announced on may 26,2011  26,2011 

 

cont…   

Green Funding Examples 

The

South Korean government plans to invest $193 million for the development of alternative sources of energy. Central government- investing in waste minimization in small and medium industries. 

Sustainable Urban Transport Project -promote environmentally sustainable urban transport in India & usage of environment friendly transport modes through 

demonstration projects in selected cities.

 

Issues and Criticisms There is a continuing debate over what "green" is. The  lack of a universally agreed-upon definition can be confusing. It can lead to a company claiming to be green while others disagree and possibly accuse the company of "green-washing." Given the complexity of the world's ecosystems, it is very possible for a product or company to be green in one respect, but not in another. For example, many hydro-electric dams generate electricity without greenhouse gas emissions, so are considered green in one respect. They also, however, prevent salmon from making it upriver to spawn. In that respect, they are not green. Those involved in green funding wind up determining for themselves what they consider green.

 

Future Of Green Funding As

green becomes more carefully defined, and  as metrics for measuring greenness improve, those involved in green funding, including customers of green companies, will continue to finance green projects and businesses. It remains to be seen whether further climate legislation is enacted around the world, which would funnel even more funds to those who can be competitive in a way that treads lightly on the environment. 

 

References http://www.eximguru.com/budget_2011_12highlights.aspx  http://www.deccanherald.com/content/72081/i ndia-seeks-global-funding-green.html   ndia-seeks-global-funding-green.html http://news.cnet.com/8301-11128_320066489-54.html  http://www.investopedia.com/terms/g/green_f und.asp#axzz1dJmfIyMR 

http://www.greenfund.com/   

THANK YOU!!!