ZELENE FINANSIJE KAO PRETPOSTAVKA ODRŽIVOG RAZVOJA I ZELENE TRANZICIJE
GREEN FINANCE AS AN ASSUMPTION SUSTAINABLE DEVELOPMENT AND GREEN TRANSITION

Author(s): Radomir Božić
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: Finrar d.o.o Banja Luka
Keywords: sustainable development; climate change; green transition; green finance; Western Balkans;
Summary/Abstract: The paper points out the need, importance and role of green finance, understood as the adjustment and response of financial systems as a whole, or their elements - markets, instruments and institutions, to the challenges and needs of financing the green transition. The first part of the paper elaborates on the need and essence of green transition, as a current priority of sustainable development imposed by the trend of serious climate change caused by current development concepts and models that, motivated by maximizing profits and wealth, neglected care for the environment resources for future generations. In this context, the countries of the Western Balkans also have no choice and must follow the European Green Agenda and the goal of the European Union (EU) of which they would like to be a part, to make Europe a carbon-neutral continent by 2050. The second part of the paper elaborates on the essence of changes in the financial sphere, synthesized in the term green finance, in order to provide adequate support and financing for the green transition. Potential financial sources are pointed out, such as earmarked funds and EU support in the function of replacing existing energy sources with new, cleaner and renewable ones, but also the need to make public and private, domestic and foreign financial resources available, while strengthening overall social and environmental awareness, primarily engage and combine for the needs of green finance and green transition. The third part of the paper presents some previous experiences, approaches and practices that could be useful for developers of development and business policies in the public, real and financial sectors in the Western Balkans in order to successfully implement the green transition and its adequate financing.

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