Sarp Demiray Advocates Unified Efforts for Sustainability and Financing Innovation

EMBank Chief Executive presents comprehensive approach to bridge sustainability financing gap through collaborative action and innovative solutions

VILNIUS, LITHUANIA, December 19, 2024 /EINPresswire.com/ -- Sarp Demiray, CEO of EMBank, has highlighted the critical need for coordinated efforts across individuals, governments, businesses, and financial institutions to address sustainability challenges.

In a recent two-part series, Demiray underscores the urgent need to align environmental goals with economic systems and the essential role of innovative financing in bridging gaps for sustainable development.

Advancing sustainability: roles and responsibilities

Demiray emphasises that sustainability is a shared responsibility involving all sectors of society. Governments must establish clear regulatory frameworks and provide incentives for sustainable practices, while businesses play a pivotal role in reducing emissions and adopting greener practices. At the same time, individuals influence market trends through sustainable choices, and financial institutions mobilise the necessary resources.

“Sustainability requires collective action. Every segment of society has a role to play in driving the transition to a greener economy,” said Demiray.

The article references the electric vehicle (EV) industry as a prime example of successful collaboration. Governments introduced subsidies, businesses invested in research, and financial markets supported growth, transforming EVs from a niche product to a mainstream choice.

The financing challenge and solutions

In his second piece, Demiray discusses how the financing gap for sustainability can be addressed. He stresses the importance of blending public and private investments to mobilise resources effectively. He noted that the United Nations estimates that achieving the Sustainable Development Goals (SDGs) by 2030 requires $5-7 trillion annually, necessitating innovative approaches.

Key recommendations include:

-Blended financing: Combining public and private resources to mitigate risks and attract investment, especially in developing nations.

-Clear green taxonomies: Establishing standards to define sustainable investments and guide capital flows.

-Innovative tools: Expanding the use of green bonds, sustainability-linked loans, and digital financial products to make green financing accessible.

“Financial institutions, including fintechs and neobanks, must leverage technology and creativity to fill the sustainability financing gap,” Sarp Demiray noted.
Europe leads, but global efforts are crucial.

Demiray points to the European Union’s leadership in sustainability financing through frameworks such as the EU Taxonomy and Sustainable Finance Disclosure Regulation. However, he also highlights the unique challenges faced by developing nations, which require increased international cooperation and financial support.

Looking ahead: a cautiously optimistic outlook

While acknowledging challenges, Demiray remains optimistic about the future of sustainability financing. He believes that with increased awareness, collaboration, and innovation, progress toward a sustainable global economy is achievable.

“By aligning policies, business practices, and financial strategies, we can accelerate the transition to a greener future,” Demiray concluded.

For a detailed exploration of these insights, they can read Sarp Demiray's full articles on LinkedIn: Sustainability: The Role of People, Companies, Governments and Sustainability Financing: Blending Public and Private Finance Well

Dilek Işık
European Merchant Bank (EMBank)
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