Financing Models for Climate Change

Climate change represents the most important challenge of today's world and will require creativity, innovation, and resources to find viable solutions. Banks aim to be leaders in environmental financing alongside European Union governments and other entities. The main banks in Romania (BRD, BCR, Banca Transilvania, Unicredit) have adapted products and services designed to finance the climate changes we are currently facing, offering a wide range of green, sustainable, and sustainability-related facilities, with the main funded sectors being: ▪ Agribusiness and food products; ▪ Energy, Defense, Aerospace; ▪ Oil and gas, Telecommunications, IT and technology, Metals, Utilities; ▪ Pharmaceuticals, Retail, Real Estate, Steel; ▪ Transport, Logistics, Automotive Distribution, Equipment, Other industries (textiles, etc.); ▪ Construction, Infrastructure; ▪ Municipalities, Local Authorities; ▪ Insurance, Financial Institutions, Ministry. In this regard, Climate and Environmental Change Committees have been established, which are consultative, permanent, and whose main mission is to support each bank in carrying out strategic analysis, to present to the Management Committee the measures for implementing the financing strategy by making proposals for setting objectives regarding the adoption of the relevant regulatory framework, monitoring commitments, communication, and any other issues related to environmental and climate matters, adapting to stakeholder requirements, complying with legislative requirements, and ensuring performance monitoring. Specifically, the following are monitored: a) Indirect emissions resulting from the supply chain and the financing portfolio; b) Waste generated (paper, IT products); c) Energy consumption; d) Indirect emissions resulting from energy consumption for electricity, heating, and cooling; e) Water consumption; f) Emissions resulting from the banks' own activities. Sustainable financing is also taken into account, along with the contribution to environmental protection through the sustainable financing provided and the positive impact on people's well-being and living standards.