What’s It All About
Environmental banking is a form of environmental protection that is also a business opportunity for the private sector. The extraordinary power of the profit motive, which fosters success in our economy, is being applied to protect our natural resources. This moneymaking incentive of environmental banking is extremely powerful. By creating environmental banks, proponents now have the opportunity to profit by doing something good for the environment. Everybody wins.
Environmental banking is the creation and sale of a natural resource commodity or a pollution reduction. An environmental bank is a project that creates some type of marketable improvement in environmental quality. Traditionally, when polluters destroyed natural areas or polluted our air or water, environmental regulations required compensation for the damage. The responsible government agencies found it difficult to force developers or polluters to pay for their impacts. Environmental bankers have been introduced as third parties to offset the adverse impacts to natural resources and sell the assets that they create to customers at a lower cost
than they would have to pay to complete the offsets themselves.
Entrepreneurial, for-profit environmental banking is an incentive-based resource
management approach that can help achieve a sustainable balance between
what humans need to live and the natural environment. Your environmental
bank, no matter what type, will be an on-the-ground achievement to help
sustain the health of our natural environment. Increasing and protecting
the world’s natural resources, while accommodating growth and
development, is what banking does, and it is the right thing to do.