OCCE Analysis | Green finance & circular economy – Discover OCCE key areas provided for the green finance & circular economy

current issues

Mentioned for several years now, sustainable development requires a balance between people, the environment and economic development. The role of the financial sector in this ecological transition is central. Finance must also adapt to this changing context.

Private companies, the public sector, individuals, financial institutions and regulatory bodies must open up and integrate the processes for greener finance. Indeed, the profitability of finance must absolutely take into account the environmental dimension, both in the resources taken from nature, but also in the emissions emitted to the climate and ecosystems. Ecological and social responsibility should be an integral part of the performance factors for investments.

Investments to ensure the race for innovation

It is estimated that investments in energy efficiency in recent years will go into overall net savings from 2025. To support this trend, it is necessary to encourage the race for innovations in the market and financial instruments, the availability of credits linked to renewable energies, the green investment rating and support for emerging energy markets.

In addition, an investment deficit estimated at 180 billion euros per year must be filled in order to reach the United Nation's sustainable development goals. To make up for this deficit, the European Union is implementing a series of measures aimed at stimulating green investment (taxonomy, labeling for green financial products, etc.).

OCCE's Key Proposals
for a Green & Circular Finance

Induce cooperative and local financing:

Possibility to see the project and the impact on its direct living environment.
Blockchain employer for environmental investment:

With a low cost of management and a high level of security and confidence).
Strengthen and make clearer the specifications prior to green projects:
It's on the basis of these specifications that the investments could be made in particular:
- on the health issue (environmental quality and limitation of pollution caused by the project);
- limit solastalgia (moral impact of deterioration and / or improvement of the living environment)
Develop training (professionals) and information training (general public):
Switch to a positive reading of the future and oriented towards solutions and commitment.
- Published circular economy modules and / or labeling training courses around green finance.
- New type of media which connects private time (paid conferences, MOOC opening to certifications) and public time (communication on best practices).
Building sustainable accounting standards:
Integration of externalities in the creation of book value in companies' balance sheets
- Limitation of transport and movement-
- Reduction of consumption and waste;
- Use of Blockchain
Towards new convergent criteria / criteria ESG and SRI:
Converge the international certification practices / methods around these benchmarks.
Gradually attract investors to green finance:
Convince and explain why the returns are at least as good based on concrete examples. Get out of guilt or blacklisting for bad practices. Invent new forms of growth, achieve new progress.
Imagine inverse criteria:
More simply than it pays off. Can we not consider a profitable project on what it does not cost to nature, resources and environmental quality.
Find new models of construction of Equity:
(by mixing the old models). Banks require 25-30% equity to finance 70% debt. Mix local direct equity, bonds, borrowing, etc. Baskets by risk diversification, monetary models and value creation.

3 CHALLENGES / TARGETS
FOR GREEN INVESTMENTS

Equipment projects having an impact on the living environment: Public works / Construction
- Basic location of projects (nearby)
  Location of choice of companies / Choice of service providers (near construction sites);
- Positive energy balance / Technological choices;
- Choice of materials (proximity) / See use in the construction of reusable materials.
Startups: new technologies and new ecosystems
Calling for the location of funding (proximity vision around improving its quality of life nearby). local Intermunicipal platforms of economic interests (economic communication tools) for a base for local investors.
Projects incorporating "Green finance" criteria - For projects with high environmental value :
- Green Energy / Recycling Materials-Water-Waste / Eco-Designed Projects.
- Organization of collection and processing circuits.
- Organic and quality food.