Climate change is a controversial phenomenon in the world. It is not a new occurrence, as human beings have gradually been adapting to the changing climatic conditions over the centuries. It is speculated that before the year 2020, the world will be the warmest it has ever been. The climatic changes are incredibly accelerated due to human activities across the world. The major contributing factor to the change is high levels of carbon IV oxide in the atmosphere. This arises from the excessive combustion of carbon-based fossil fuels for the production of energy. Also, carbon IV Oxide is a by-product of all living organism and forms a minor element in the composition of the atmosphere. However, the greenhouse effect arises from the composition of a small amount of CO2 along with water vapor. Despite the awareness that the alarming concentration of CO2 in the atmosphere could drastically interfere …show more content…
Their capital is instead directed towards enterprises and projects that are less invasive on the environmental costs and also benefits the environment. Research has revealed that despite the way most financial institutions are structured, there are other multiple ways to which the financial sector can contribute to a green economy. This includes quantifying risks of all the problems associated with the environment. This way companies who fail to adhere to the environmental policies ace legal action for failure of compliance. Consequently, the financial sector could also reform the regulatory regime by redirecting capital flows to outstanding priorities and not assets that deplete the natural capital (Oyegunle & Weber, 2015). With the regulatory changes, the efforts put in by the financial sector will comprehensively impact the global