We know, we know. You recycle, always remember your reusable bags, banned plastic straws forever, and even started composting. How much greener can you get!? Well, how about greening up your wallet?
You recycle, remember your reusable bag, and have heard of the other ways to become greener, but do they seem a little too complicated? A simple way to go green, that could save you green in the long run, is to switch banks! It’s true that you’re already saving loads of green with rewards from Recycling Perks but we’re talking about green banking.
What’s a green bank?! Green banks, in a nutshell, are planet avengers.
Green banks provide the same services as regular banks but they use socially and environmentally responsible banking practices. So now your dollars can do the hard work you don’t always have time for.
Why aren’t all banks like this? Truth is, you don’t really get any say-so about how your bank uses your money. Traditional banks are in it solely for profit. Although many of them support surface level green initiatives, they may also finance environmentally destructive projects at the same time. So while you’re being mindful of your carbon footprint by riding your bike to your bank instead of driving, your bank might not be following your lead.
Green banks, however, strive to create more sustainable and balanced banking that protects the planet and benefits people by only investing in clean, green projects. The Coalition for Green Capital says, “…Green Banks care about deploying clean energy rather than maximizing profit. They actively develop a pipeline of clean projects and seek out opportunities in the market.”
By doing this, they’re bridging the gap between the economic component and the needs of the environment. This allows for innovative and creative environmental solutions that might never get off the ground to be financed and implemented.
Green banks and banking practices have started to pop up around the globe thanks to the Paris Agreement. Many countries, like the UK, Australia, and Japan, have national green banks and are committed to ambitious climate action. According to an article written by Tamara Grbusic and Laurie Stone of the Rocky Mountain Institute, “The UK Green Investment Bank helped increase the penetration of LED technology in street lighting by offering local authorities low, fixed-rate loans over a period of 20 years.”
In the U.S., however, green banking is done on a state and local level, providing much-needed aid to cities and states looking to change the devastating impacts on the climate.
Many of the devastating effects that occur as a result of climate change affect low-income neighborhoods the most. Green banking provides major opportunities to prevent many catastrophic events, such as what transpired in New Orleans during Hurricane Katrina.
By choosing to green up your wallet and going with a green bank, you empower others to take action against climate change for you, while actively helping innovators secure financial backing that creates a green future. And, since your green actions have an impact, shouldn’t your financial transactions have green impacts too?
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