Why Is ‘Green Banking’ Important?
The UK Government’s target of net zero by 2050 will have more of a chance of becoming a reality due to green banking. Green banking allows our money to create a future that is much more sustainable. Their investments into green and sustainable projects will help the UK to reach net zero much quicker, as many banks on the high street are still investing in greenhouse gas releasing projects.
Roughly 80% of people in the UK don’t know what their bank is doing with their money. In many cases they use your money to fund unsustainable projects, mainly those that deal with fossil fuels. Therefore, unbeknown to you, you are indirectly spending your money on environmentally harmful projects, which increases your carbon footprint.
This means that green banking is as important as ever, especially regarding how we spend and invest our money. In order to spend our money in a green way we make sustainable purchases, which we are aware of, including buying an EV, eating less meat and buying products we know are made from sustainable sources. Green banking allows us to save and invest our money in an environmentally friendly way, as we know are money is going to sustainable projects.
Many green banks also call themselves ethical banks, this is because they also refuse to invest in companies that deal with weapons and tobacco.
This article forms part of our Green Finance Focus Week, where you can learn all about green finance, investments and pensions. Changing your bank to one that does not invest in fossil fuels is one of the cheapest and most powerful ways to reduce your carbon footprint and defund new fossil fuel projects.
www.UKGoingGreen.co.uk
