Here’s an extract from the radio:  ,
Andrea Heng:  ,
What kind of investment will most fit green financing or transition finance?  ,
Prof Lawrence Loh:  ,
To put it in one word, it’s for the traders who want their cake and eat it… So in other words, you still have your essential rates of return, your Profit, because… finally whatever expense, by definition, is someone where you need a certain retribution to you, including a particular surplus. However, I believe that investors are beginning to recognize that they are important in changing world, and even contributing to better environmental protection. And I believe it’s even better if they can do it all at once with what they call the monetary gain. And I believe that some of these promises are now being fulfilled by the numerous green instrument categories.
Andrea Heng:  ,
Yes, I appreciate you bringing that off. You’re an expert in this field, but I wanted to get your studies on the market. It’s not totally novel. It’s novel to many of us, people, the average person. How has it performed? Has green finance and change finance actually helped to achieve some of these climate change-related objectives that the media continues to talk about and talk about?
Prof Lawrence Loh:  ,
Yes, I think if you look at, say, natural financing, it is actually not just being emerging today. If you look at environmental-based finance, it’s basically turning the embryonic curve inward toward something that is developing very quickly. Another one that is actually not quite environmental is socially linked ( finance ). But of course, these two can be lumped together and then generally ( be known as ) sustainability- linked ( finance ). This part is, I think, very well cultivated, and they are really keeping up with, I would suggest, the conventional financing. However, change finance is the one that is also making baby ways. And I think individual investors wo n’t know what to do with them, because they are actually very complicated. You are funding, let’s say, businesses that are attempting to stop using coal to generate power.  ,
Andrea Heng:  ,
And that’s difficult. That’s hard to do.  ,
Prof Lawrence Loh:  ,
It’s challenging, so I believe that the retail investors or specific investors need to get to the sport. Because understanding change is really more challenging than understanding the funding, I believe it is not that simple. But in change finance, the important point is really the transition, not so much the financing.