GCC ‘green finance’ sector has potential to unlock $2t GDP, over 1m jobs

GCC ‘green finance’ sector has potential to unlock $2t GDP, over 1m jobs

Global borrowing by issuing green bonds and loans, and equity funding through initial public offerings targeting green projects, swelled to $540.6 billion in 2021 from $5.2 billion in 2012, according to a new study from the TheCityUK and BNP Paribas

GCC countries, which have some of the highest solar exposures in the world, have the solar advantage too. A solar-photovoltaic panel in a GCC country produces twice as much output as it would in Germany or any climatically similar European country — 1,750 to 1,930 hours of full-load operation per year. — File photo

Published: Wed 6 Apr 2022, 3:47 PM

GCC governments have the potential to unlock $2 trillion in cumulative GDP (gross domestic product) contribution and more than one million jobs in addition to foreign direct investment in sustainable industries through green finance, experts said.

While no commonly agreed definition exists, basically “green finance” is used to label the two-way interaction between finance and the environment. The aim is to use the investment to mitigate and manage environmental risks, while aiding the transition to a sustainable, low carbon global economy, according to green finance pundits.

“While all GCC countries have already begun their respective sustainability journeys, policymakers must act decisively and in a