Buttressing Sustainability covers climate change financing, energy access, investment and environmental protection
Climate change financing impacts the policy developments and international collaboration. Banking industry growth that played significant roles in providing various financial products such as corporate and government bonds settlement. This would connect and create interdependencies between countries. It could increase significancies of economic interdepencies level. Assume that previously country A and country B has 7% and 9% economic growth, with better coordination will create better rate become 9% and 10%. It decrease inequality borders between nation.
Global bank such as Standard Chartered, Citibank, HSBC, JP Morgan, Sumitomo, ICBC bank that flowing its money from strong financial countries to the developing countries would create financial climate change. Nation and corporation would bear its cost of investment for growth. However the agenda should be coordinated by G20 countries since there is a connection between money consuming of consuming country and money producing country. Speed of lending should be controlled to manage the inflation rate. Such as a fast debt flowing to the countries create high inflation rate. Some people with good financial condition that could buy things produced by corporate products. Thus nation that being market in the economy should provide the good financial regulation.
Some countries with tight financial regulation might not attractive for investor but it really needs. It usual for nation with better financial condition or called producing money country with more complex regulation. Thus the creation of financial policy should be sinergized and communicated between nation, otherwise only create more gaps. Unbenefited country would be the cost of global economy and better financial country would bear the cost in the end.
The hot issues in financial climate change is that the global banks provide product that people could easily access foreign fund for in country business, property market that is boosted recently. Thus development in the accomodation and infrastructure create more needs of energy, the high demand for people to transport from one to another. Oil demand is increasing in China and Indonesia by 20 % on average annually since car market are also increasing.
The climate change in financial sector impact the real sector especially in the energy as the basic needs of human energy. Shell gas project that is financially funded by huge Bank could provide energy alternative for human activity. It could replace the oil that the price is increasing overtime until 2014. However recently without compact resolution, Saudi Aramco sell its oil with lower price. Make oil price low means that it is more economical to use oil rather than shell gas that still in progress.
However, Bank will still support shell project for this energy alternatives. Thus evidence one country impact global, one country impact another country. Toshiba with its project developing new energy alternatives in India would also create impact on the global energy needs. Oil company consumed massive capital for its project, and also create profit. To find the best coordinated policy is the wise solution for all. Not only one benefited but also for all.
Energy company with massive capital find new alternative that is environmentally friendly. Thus investment policy on the energy business played the significant roles in determining better environmental growth. Nation should point to notes in the action plan of 2015 forwards that financial and energy regulator should communicate its master plan. So then, the each nation will grow simultaniously towards better sustainability.
The cooperation between nation in exchanging natural resources and human resources should be balance in terms of trade and business. Thus the financial sector will be sustain with its best real sector with its people from their talent operating energy production. The cooperation between nation to transfer knowledge should be boosted. It is true that technology is the secret of the company, since they are making profit. But nation should should also learn from other nation through discussion and get win win solution.
Change in the financial climate change is not only impact the huge capital corporation but also should consider the small medium entreprises that needs lending for the growth. This agenda would be wised discussed in the G20 summit to control capital flow from one country to another. Massive capital corporation could cause sudden death for Small Medium Entreprises since they could loose from competition. Financial institution should provide more lending to SMEs with lower rate of return rather than to finance the building of mall. Financial regulator should also create policy that provide compensation for some area focus that is needed to be developed.
All will end up with the environment. The global concern should include emvironment as vital part in the agenda to make sure that the next generation still live in peaceful and good environment. The industry should invest more on research and development how to decrease the pollution. Profit shoud include the environment gains, not only in terms of money but in terms of fresh air, clean and reduce waste of the industry. To sum up, The business growth is the essential part in the financial climate change, energy market, investment and environment.