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Financial systems development
Green finance – a new development policy approach
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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.