The scenario for the development of green financing products in the Colombian economy

Abstract

This research work intends to propose to Colombian banks, the opening of a new line of business focused on offering products with investment and ecological destination. These "green" financial products lead us to understand the importance of green projects in today's world, and how they could benefit from supporting this initiative, in terms of tax reduction for the social work that would be developed. This goal will be achieved through the implementation of strategies, whose purpose is to raise money from small and large investors, through the issuance of green bonds, which would generate a higher interest rate than that offered in the conventional market for similar products, these resources will have an environment-friendly destination. When talking about the friendly destination of resources, the focus is on the creation of a new line of credit that geared towards the development of green finance. In this line, the placement rate is lower concerning the other lines of credit, and people could be more interested in acquiring and supporting this type of sustainable initiatives. This paper describes the characteristics of green products, their classification, and main characteristics, and then presents some examples of financial corporations that offer Green Credit Lines in Colombia.