A study on dynamics of green financing : A qualitative analysis of supply and demand on green products and future opportunities

Sammanfattning: Global warming and an increased focus on sustainability has grown in society and in various industries. This study takes an approach in the role of the financial industry with a focus on sustainability from a supply and demand perspective in the Scandinavian banking market. Based on literature studies, the frameworks System Dynamics and Multi-Level Perspective are used in order to map the complex system of green financing with a focus on the banks' larger corporate customers. The frameworks are used to describe the dynamics on the green financing market between the government, banks and the corporate customers. In order to identify future threats and opportunities and to map how the green financing market has developed, experts from the Swedish leading banks were interviewed. The study shows that increased awareness in sustainability and demand for green products have been driving the development of green products. Green financing is still a relatively new market where major changes have taken place and continue to take place as new guidelines and frameworks are being introduced. The regulatory instruments continue to drive the market forward as it creates support, standardization and harmonization of the market, while at the same time increasing the demands on reporting which can be expensive for smaller actors to meet. There is a positive outlook on the growth of the market from both the supply and demand side, although it is difficult to determine how fast the market will grow. The future is being met by challenges in how to standardize the green products, design them to fit a broader customer base and adapt them to future stricter regulations. Rules and frameworks will continue to be created to regulate the green financing market as it grows. The future possibility of new green products that will continue to contribute to a more sustainable and economically sustainable society is presented in the study.