Content

Financial systems development

Green finance – a new development policy approach

Please note:
Our information on the topics of economic development, growth and employment is currently being thoroughly revised. An updated version will be available here shortly.


Green finance is an innovative approach of German de­vel­op­ment co­op­er­a­tion. The financial sector in co­op­er­a­tion coun­tries becomes part of the transition process to a low carbon, resource efficient economy and to improved adjustment to climate change.

For instance, financing products are made available to facilitate invest­ment in resource-saving production techniques. The introduction of needs-driven financial services, such as insurance cover against extreme weather events, allows the popu­la­tion and the institutions affected to cover them­selves against the consequences of climate change.

Green finance is part of a strategy that is intended to foster en­vi­ron­men­tal­ly sound eco­nom­ic growth in co­op­er­a­tion coun­tries. Qualitative eco­nom­ic growth is a central component of sus­tain­able de­vel­op­ment which also en­dea­vours to reduce pov­er­ty in de­vel­op­ing coun­tries.

BMZ glossary

Close window

 

Share page