The threat of climate change has never seemed closer to us than in recent years, when a global awareness of the issue has been awakened that is unprecedented in our history. Institutions, especially the European Union, are leading the necessary transition towards a sustainable, low-emission economy, seeking a more social and environmentally responsible growth.
Banking, as the driving force of the economy, is crucial in this process, according to Alberto Aza, spokesperson for CECA. This banking association brings together some of the most important banks in our country: CaixaBank, Kutxabank and Cajasur Banco, Abanca, Unicaja Banco, Ibercaja Banco, Caixa Ontinyent, Colonya Pollença and Cecabank. "Meeting the goals of the 2030 Agenda is going to require a very significant level of investment", he says.
"In the European Union, the transition will be financed through the European Green Deal Investment Plan, but also through the Next Generation EU Reconstruction Funds launched after the pandemic, which will clearly provide a very important additional financial boost. With these two initiatives, the European Union aims to mobilise €1.2 billion per year in public and private funding. For this goal to be met, the involvement of the banking sector through sustainable finance will be crucial", explains Alberto Aza.
By sustainable finance, the expert is referring to "finance that, without abandoning strictly financial criteria such as profitability, risk and liquidity, also includes environmental, social and governance criteria and, therefore, will be fundamental in enabling the transformation of our economy towards a more sustainable model".
This type of financing, such as green loans or social bonds, will redirect capital flows towards more socially and environmentally responsible activities and sectors. "As a driving force of the economy, banking will play a key role as a catalyst for change thanks to the sustainable financing granted to companies and households", says Alberto Aza. In addition, household loans linked to sustainable consumption will promote more environmentally and socially responsible habits.
With regard to corporate credit, "in Spain, the bulk of corporate financing is actually channelled through the banking sector", explains the CECA spokesperson. "In other words, without banking, it would be difficult for our companies to tackle the challenge of transforming their production model towards a more sustainable model. Moreover, in the coming years and with the execution of European funds, the involvement of the banking sector will be even more important because bank co-financing of investment projects will be necessary in order to multiply the impact of this European aid on the real economy".
