JEL Classifications: E520, G280
GREEN ECONOMY AND ACCESS TO FINANCE IN GEORGIA
(GOING BEYOND THE COMMERCIAL BANKING SECTOR TO FINANCE BUSINESSES IN GEORGIA) Author: David Aslanishvili
| Published: 2019-07-29
| Pages: 87-95
For Citation: Aslanishvili D. (2019), Green Economy And Access To Finance In Georgia (Going Beyond The Commercial Banking Sector To Finance Businesses In Georgia), Globalization And Business, N7, pp. 87-95.
This research will explore other possible financial vehicles that go beyond traditional sources of private capital offered by commercial banks. It will look at international experience and the opportunities to use public support, green bonds to raise green finance as well as the work of energy service companies (ESCOs) to finance green investments.
We have offered our view of what should be done in fact (not in paper in Georgia as it has been in the past 15 years) to change the situation and end the negative and harmful monopoly of the commercial banks and the National Bank of Georgia and to have in place the two independent sources to attract and invest resources in Georgia.
This will increase the capitalization of the country and is a proven way to eradicate the country›s lagging and accelerate economic growth.
Why should we focus on this issue?
- According to WHO›s latest data, over 7 million people die each year because of breathing air with solid particles, and one of its main pollutants is vehicles. (Cereceda Rafael, Cuddy Alice. 2018.....)
- Georgia’s Capital - Tbilisi - is occupying the 3rd place in the light of air pollution,
- Due to the critical situation, the public demand to live in a clean ecological environment, day by day increases.
In our research the following Questions are discussed and overviewed:
- Is it important to act on the issues of Georgia›s position on the global scale?
- What unique components can be used to prolong the average life of people?
- What investors do the country need for building eco-projects and their realization?
- What type of ecofriendly technologies can be developed for potential customers in Georgia?
In that field we have studied the following:
- The links between economic growth, green growth (e.g. clean energy), high living standards and capital markets;
- Why the Commercial Banks are the main and the only source of finance for green (and not only) investments in Georgia;
- Situation on capital markets of Georgia (stock and bond markets) - as an indicator of economic growth and an alternative source of financing;
- Possible benefits of non-bank financing, including for clean energy projects and the SME sector (e.g. small hydro, energy efficiency);
- The role of government in supporting capital market development;
- The role of international community (donors, IFIs, international organization) to support Georgia’s efforts to develop capital markets
GREEN ECONOMY, ACCESS TO FINANCE IN GEORGIA
- Davit Aslanishvili, (2019). International Conference on: Cooperation, Development, Exchange in Higher Education: Academic practices and achievements from Emerging Europe, Hungary, Miskolc University, May 7, 2019;
- D Aslanishvili (2016) Market Foundation for Sustainable Economy Growth and Energy Policy (Georgian Case). Modern Economy, volume 7, p. 314 –319Modern Economy, 2016, 7, 314-319 Published Online March 2016 in SciRes. http://www.scirp.org/journal/me, http://dx.doi.org/10.4236/me.2016.73034
- Aslanishvili, D. and Omadze, K. (2016) Origins and the Reasons of Monetary Crises in Georgia (1995-2016). Modern Economy7, p. 1232-1250.http://dx.doi.org/10.4236/me.2016.711119
- Aslanishvili, David; Muller, Dietrich; Omadze, Kristine, Analyse of the past Industrial Revolutions and possible outcome of the coming new fourth In-dustrial Revolution (Industry 4.0), Con-ference: International Scientific-Practical Conference Dedicated to the Foundation of the Institute Innova-tive Economy and Problems of Its Formation in Post-Communist Countries. Pages: 100-106, Year: 2016
- Aslanishvili, David; Omadze, Kristine, Monetary Crises in Georgia – 1995 – 2016 Source: Ekonomisti, Volume: 8, Issue: 1, Pages: 89-108, Published: 2016
- Aslanishvili, David, Ricardo equivalent, the origin of state debt, its meaning and practical purpose Conference: Modern Tendencies of Development of Economy and Economic Science, Pages: 18-22, Year: 2018
- Aslanishvili, David; Omadze, Kristine, Georgia›s external debt structure and the challenges of the current situation Conference: International Scientific Conference Dedicated to the 65th birth anniversary of Professor George Tsereteli Structural and Innovative Problems of Economic Development, Pages: 25-28, Year: 23-24 June, 2017,
- Author(s): Aslanishvili, David; Omadze, Kristine, International Discussions on Bank Credit and Economic Growth Relationship (Expanded Summary), Source: Ekonomisti, Issue: 2, Pages: 62-74, Published: 2018
- Aslanishvili, David, Place and importance of the government securities market in the European Union: recent trends and discussions (Expanded Summary), Source: International Scien-tific-Analytical Journal EKONOMISTI, Issue: 5, Pages: 12-14, Published: 2015
- United Nations Environment Programme and World Tourism Organization (2012). Tourism in the Green Economy – Background Report, UNWTO, Madrid. [ Electronic resource]: Retrieved from https://www.e-unwto.org/doi/pdf/10.18111/9789284414529
- World Wide Fund For Nature (WWF, 2019). Over 80% of marine pollution comes from land-based activities. [Electronic resource]: Retrieved from http://wwf.panda.org/our_work/oceans/problems/pollution/
- Future we want. 2012. Outcome document of the United Nations Conference on Sustainable. Development Rio de Janeiro, Brazil, 20–22 June 2012 https://sustainabledevelopment.un.org/content/documents/733FutureWeWant.pdf
- Towards Green Growth. 2011. https://www.oecd.org/greengrowth/48012345.pdf
- Berger, Roland. 2011. Green Growth, Green Profit How Green Transformation Boosts Business. Green Growth, Green Profit. US, New York: Palgrave Macmillan. https://doi.org/10.1057/9780230303874.
- Cereceda Rafael, Cuddy Alice. 2018. “9 Out of 10 People Worldwide Breathing Polluted Air.” Euro News. https://www.euronews.com/2018/05/02/9-out-of-10-people-breathing-polluted-air-worldwide.
- Madhipatla, Kishore, S Venkatesh, D J Christopher, Jeffrey D Stanaway, R S Dhaliwal, LalitDandona, Virendra Singh, et al. 2018. “The Impact o f Air Pollution on Deaths, Disease Burden, and Life Expectancy across the States of India: The Global Burden of Disease Study 2017.” The Lancet PlanetaryHealth 3 (1): e26–39. https://doi.org/10.1016/s2542-5196( 18)30261-4.
- World Health Organization. 2018. “World Health Organization Releases New Global Air Pollution Data.” CCAC Secretariat. http://ccacoalition.org/en /news/world-health-organization-releases-new-global-air-pollution-data. https://www.energy-community.org/
- A strategy for smart, sustainable and inclusive growth” and in 2011 “A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy”
- Geoffrey Heal - THE ECONOMICS OF RENEWABLE ENERGY (2009)
- International Energy Agency - World Energy Outlook 2016
- Nicholas Apergisa, James E. Payneb - Renewable energy consumption and economic growth: Evi-dence from a panel of OECD countries (2010)
- OECD (2009), “The Bioeconomy to 2030. Designing a p olicy agenda”; EU (2012), “Innovating for Sustainable Growth: A Bioeconomy for Europe”; U SA (2012), “National Bioeconomy Blueprint
- TheEuropean Commission’s ‘Europe 2020’ strategy con siders developing a smarter and greener Europe essential
- Green for Growth Fund. www.ggf.lu
- United Nations Framework Convention on Climate Change. www.unfccc.int
- World Resources Institute. http://www.wri.org/our-work/project/climate-finance/climate-finance-and-private-sector